Skip to main content

Full text of "Selling expenses and their control; a study in the retail distribution of clothing"

See other formats


±err> 



Southern Branch 
of the 

University of California 

Los Angeles 

Form L 1 

Q,eo\ 



This book is DUE on the last date stamped below 



OCT 13 t34j' 

SEP 2 1347 

JAN 2b '-'^ 
OECl :4W9 



Form L-9-5)n-7,'23 



SELLING EXPENSES 

AND THEIR CONTROL 

A Study in the Retail Distribution of Clothing' 



BY 

NORTHWESTERN UNIVERSITY SCHOOL OF COMMERCE 
BUREAU OF BUSINESS RESEARCH 

HORACE SECKIST, DIRECTOR 



IN CO-OPERATION WITH THE 

NATIONAL ASSOCIATION OF RETAIL CLOTHIERS 




44392 

PRENTICE-HALL, Inc. 
NEW YORK CITY 



COPTEIGHT, 1922 

nohthwestern university ajtd 
National Association of Retail Clotheebs 



PRINTED IN THE UNITED STATES OF AMERICA 






4* 



«0 



s 



PREFACE 



This study was undertaken for two 
primary purposes: first, to determine 
what it costs to sell clothing in stores 
operating as independent units, and 
second, to find, if possible, the prin- 
ciples governing these costs and the 
methods by which they may be con- 
trolled. 

A previous study made by the Bu- 
reau of the retail cost of distributing 
clothing showed that it was necessary 
to classify stores by years, by size and 
by location. Accordingly, such a 
classification is provided for in this 
analysis. But here the study is pushed 
further. It answers the question: 
What are the conditions which con- 
trol the amounts of selling expense? 
and it measures the degree to which 
the control is exerted under different 
conditions of store operation. 

The study was begun on the basis 
of certain hypotheses which, on an a 
priori basis, seemed to summarize the 
conditions controlling selling expense. 
These hypotheses were tested statisti- 
cally on the basis of store records for 
different years and for stores of dif- 
ferent size and location. Briefly, the 
analysis has led to the conclusion that 



the relations of selling expense to sales 
and to total operating expense are 
governed by conditions which, to a 
large degree, are subject to effective 
merchandising control ; that they vary 
according to clearly defined princi- 
ples; and that these principles can 
be stated and the conditions of ex- 
pense distribution under them meas- 
ured. In a word, the analysis has led 
to the belief that there are certain 
master or controlling facts behind in- 
dividual facts, as they show them- 
selves in modem business, and that 
these may be revealed through statis- 
tical analysis of mass information. 
There is a science of business. Its 
principles can be stated so that those 
who are interested can, if they will, 
act in the light of them rather than 
in the grip of blind routine. 

In the preparation of this study, 
the value of the services of the entire 
staff of the Bureau is cheerfully ac- 
knowledged. Special mention, how- 
ever, should be made of the part 
which has been taken by Miss Blanche 
Altman, assistant to the Director, and 
by Miss Irmgard J. Grabbe, the Di- 
rector's secretary. 

Northwestern University School of CommeTce, 

Bureau of Business Kesearch, 

Horace Secrist, Director 



CONTENTS 

PAGE 
I. INTRODUCTION 1 

II. SUMMARY 3 

1. Units of Measurement Used in the Tables and Text 3 

2. Amounts of Selling Expense and its Components, Wages and 

Salaries, Advertising, and Other Selling Expense, for 
Stores Classified by Years, by Size, and by Location 5 

3. Amounts of Selling Expense and its Components, Wages and 

Salaries and Advertising, in Relation to the Amounts of 
Stock Carried 17 

4. Amounts of Selling Expense and its Components, Wages and 

Salaries, Advertising, and Other Selling Expense, in Rela- 
tion to the Amounts Sold per Full-time Sales-person .... 20 

5. Amounts of Selling Expense and its Components, Wages and 

Salaries and Advertising, in Relation to Expenditures for 
Rent 24 

6. Amounts of Selling Expense and its Components, Wages and 

Salaries and Advertising, in Relation to the Amounts of 
Fixture Investments per $100 of Total Net Sales 26 

7. Amounts of Selling Expense and its Components, Wages and 

Salaries and Advertising, in Relation to Investments in 
Fixtures per 100 Square Feet of Floor Space 28 

8. Amounts of Selling Expense and its Components, Wages and 

Salaries and Advertising, in Relation to Expenditures for 
Advertising per $100 of Total Net Sales 30 

9. Amounts of Selling Expense and its Components, Wages and 

Salaries and Advertising, for Stores Classified by Expen- 
ditures for Advertising, by Methods of Paying Salesmen, 
and by Relative Rates of Profit per $100 of Total Net Sales 32 

III. SELLING EXPENSE AND EXPENSE RATIOS IN CLOTHING STORES 34 

1. Selling Expense for Clothing Stores Classified by Years, by 

Size, and by Location 34 

A. Yearly Amounts of Selling Expense per $100 of Total 

Net Sales and per $100 of Total Expense, 1919, 1918, 
and 1914 34 

B. Yearly Amounts of Selling Expense per $100 of Total 

Net Sales and per $100 of Total Expense, for Stores in 
1919, 1918, and 1914, Classified by Size 36 

V 



PAGE 

C. Yearly Amounts of Selling Expense per $100 of Total 

Net Sales and per $100 of Total Expense, for Stores in 
1919, 1918, and 1914, Classified by Size of City in 
"Which Located 37 

D. Yearly Amounts of Selling Expense per $100 of Total 

Net Sales and per $100 of Total Expense, for Stores 
Classified by Size and by Size of City in Which Lo- 
cated, 1919, 1918, and 1914 41 

E. Summary 52 

2. Yearly Amounts of Selling Expense in Relation to the 

Amounts of Stock Carried, for Stores Classified by Years, 

by Size, and by Rates of Stock Turnover 53 

A. Yearly Amounts of Selling Expense per $100 of Total 

Net Sales and per $100 of Total Expense, 1919, 1918, 
and 1914 53 

B. Yearly Amounts of Selling Expense per $100 of Total 

Net Sales and per $100 of Total Expense, for Stores 
Classified by Size, 1919, 1918, and 1914 60 

C. Yearly Amounts of Selling Expense per $100 of Total 

Net Sales and per $100 of Total Expense, for Stores 
Classified by Rates of Stock Turnover and by Size, 1919 75 

D. Summary 85 

3. Yearly Amounts of Selling Expense in Relation to the 

Amounts of Goods Sold per Full-time Sales-person and to 
the Methods by "Which Salesmen are Paid, for Stores 

Classified by Years, by Size, and by Location 85 

(1). Yearly Amounts of Selling Expense in Relation to 

Amounts of Goods Sold per Full-time Sales-person . . 86 

A. Yearly Amounts of Selling Expense per $100 of 

Total Net Sales and per $100 of Total Expense, 
1919, 1918, and 1914 86 

B. Yearly Amounts of Selling Expense per $100 of 

Total Net Sales and per $100 of Total Expense, 
for Stores Classified by Size, 1919, 1918, and 1914 89 
CJ. Yearly Amounts of Selling Expense per $100 of 
Total Net Sales and per $100 of Total Expense, 
for Stores Classified by Size and by Size of City 
in Which Located, 1919 112 

D. Summary 118 

(2). Yearly Amounts of Selling Expense in Relation to the 

Methods by Which Salesmen are Paid 118 

A. Yearly Amounts of Selling Expense per $100 of 
Total Net Sales and per $100 of Total Expense, 

for Stores Classified by Size, 1919 119 

vi 



PAGE 

Yearly Amounts of Selling Expense in Relation to Expendi- 
tures for Rent and to Investments in Fixtures for Stores 

Classified by Years, by Size, and by Location 127 

(1). Yearly Amounts of Selling Expense in Relation to Ex- 
penditures for Rent per 100 Square Feet of Floor 
Space , 127 

A. Yearly Amounts of Selling Expense per $100 of 

Total Net Sales for Stores Classified by Size, 1919 127 

B. Yearly Amounts of Selling Expense per $100 of 

Total Net Sales for Stores Classified by Size of 
City in Which Located, 1919 136 

C. Yearly Amounts of Selling Expense per $100 of 

Total Net Sales for Stores Classified by Size and 

by Size of City in Which Located, 1919 139 

D. Summary 140 

(2). Yearly Amounts of Selling Expense in Relation to In- 
vestments in Fixtures per $100 of Total Net Sales. . . 141 

A. Yearly Amounts of Selling Expense per $100 of 

Total Net Sales and per $100 of Total Expense, 
1919, 1918, and 1914 141 

B. Yearly Amounts of Selling Expense per $100 of 

Total Net Sales and per $100 of Total Expense, 

for Stores Classified by Size, 1919, 1918, and 1914 144 

C. Yearly Amounts of Selling Expense per $100 of 

Total Net Sales and per $100 of Total Expense, 
for Stores Classified by Amounts of Inventory in 
Relation to Sales, 1919 155 

D. Yearly Amounts of Selling Expense per $100 of 

Total Net Sales, for Stores Classified by Rates of 
Stock Turnover, 1919 161 

E. Summary 163 

(3). Yearly Amounts of Selling Expense in Relation to In- 
vestments in Fixtures per 100 Square Feet of Floor 
Space 164 

A. Yearly Amounts of Selling Expense per 100 Square 

Feet of Floor Space and per $100 of Total Net 
Sales, for Stores Classified by Size, 1919 164 

B. Summary 170 

Yearly Amounts of Selling Expense in Relation to Expendi- 
tures for Advertising, for Stores Classified by Years, by 

Size, and by Location 170 

A. Yearly Amounts of Selling Expense per $100 of Total 
Net Sales and per $100 of Total Expense, for Stores 

Classified by Size, 1919, 1918, and 1914 170 

vii 



PAGE 

B. Yearly Amounts of Selling Expense per $100 of Total 

Net Sales and per $100 of Total Expense, for Stores 
Classified by Size of City in Which Located, 1919 182 

C. Summary 185 

IV, WAGES AND S.MiARIES CHARGEABLE TO SELLING 187 

1. Amounts of Wagres and Salaries for Stores Classified by 

Years, by Size, and by Location 187 

A. Yearly Amounts of Wages and Salaries per $100 of Total 

Net Sales and per $100 of Selling Expense, 1919, 

1918, and 1914 187 

B. Yearly Amounts of Wages and Salaries per $100 of Total 

Net Sales and per $100 of Selling Expense, for Stores 

in 1919, 1918, and 1914, Classified by Size 189 

C. Yearly Amounts of Wages and Salaries per $100 of Total 

Net Sales and per $100 of Selling Expense, for Stores 
in 1919, 1918, and 1914, Classified by Size of City in 
Which Located 189 

D. Yearly Amounts of Wages and Salaries per $100 of Total 

Net Sales and per $100 of Selling Expense, for Stores 
Classified by Size and by Size of City in Which Located, 

1919, 1918, and 1914 195 

E. Summary 204 

2. Yearly Amounts of Wages and Salaries in Relation to the 

Amounts of Stock Carried, for Stores Classified by Years 
and by Size 204 

A. Yearly Amounts of Wages and Salaries per $100 of Total 

Net Sales and per $100 of Selling Expense, 1919, 1918, 

and 1914 204 

B. Yearly Amounts of Wages and Salaries per $100 of Total 

Net Sales and per $100 of Selling Expense, for Stores 
Classified by Size, 1919, 1918, and 1914 210 

C. Summary 226 

3. Yearly Amounts of Wages and Salaries in Relation to the 

Amounts of Goods Sold per FuU-time Sales-person and 
to the Methods by Which Salesmen are Paid, for Stores 

Classified by Years, by Size, and by Location 226 

(1). Yearly Amounts of Wages and Salaries in Relation to 

the Amounts of Goods Sold per Full-time Sales-person 227 

A. Yearly Amounts of Wages and Salaries per $100 of 

Total Net Sales and per $100 of Selling Expense, 
1919, 1918, and 1914 227 

B. Yearly Amounts of Wages and Salaries per $100 of 

Total Net Sales and per $100 of Selling Expense, 
for Stores Classified by Size, 1919, 1918, and 1914 233 
viii 



0. Yearly Amounts of Wages and Salaries per $100 of 
Total Net Sales and per $100 of Selling Expense, 
for Stores Classified by Size and by Size of City 
in Which Located, 1919 250 

D. Summary 256 

(2). Yearly Amounts of Wages and Salaries in Relation to 

the Methods by Which Salesmen are Paid 258 

A. Yearly Amounts of Wages and Salaries per $100 of 
Total Net Sales and per $100 of Selling Expense, 

for Stores Classified by Size, 1919 258 

Yearly Amounts of Wages and Salaries in Relation to the Ex- 
penditures for Rent and Investments in Fixtures, for 

Stores Classified by Years, by Size, and by Location 263 

(1). Yearly Amounts of Wages and Salaries in Relation to 
Expenditures for Rent per 100 Square Feet of Floor 
Space 263 

A. Yearly Amounts of Wages and Salaries per $100 of 

Total Net Sales and per $100 of Selling Expense, 

for Stores Classified by Size, 1919 264 

B. Yearly Amounts of Wages and Salaries per $100 of 

Total Net Sales and per $100 of Selling Expense, 
for Stores Classified by Size of City in Which 
Located, 1919 266 

C. Yearly Amounts of Wages and Salaries per $100 of 

Total Net Sales and per $100 of Selling Expense, 
for Stores Classified by Size and by Size of City 
in Which Located, 1919 270 

D. Summary 271 

(2). Yearlj^ Amounts of Wages and Salaries in Relation to 

Investments in Fixtures per $100 of Total Net Sales 272 

A. Yearly Amounts of Wages and Salaries per $100 of 

Total Net Sales and per $100 of Selling Expense, 
1919, 1918, and 1914 272 

B. Yearly Amounts of Wages and Salaries per $100 of 

Total Net Sales and per $100 of Selling Expense, 

for Stores Classified by Size, 1919, 1918, and 1914 274 

C. Yearly Amounts of Wages and Salaries per $100 of 

Total Net Sales, for Stores Classified by Amounts 

of Inventory per $100 of Total Net Sales, 1919 . . 285 

D. Summary 290 

(3), Yearly Amounts of Wages and Salaries in Relation to 
Investments in Fixtures per 100 Square Feet of Floor 

Space 291 

ix 



PAGE 

A. Yearly Amounts of "Wages and Salaries per $100 of 

Total Net Sales and per $100 of Selling Expense, 

for Stores Classified by Size, 1919 291 

B. Summary 295 

5. Yearly Amounts of Wages and Salaries in Relation to Ex- 
penditures for Advertising, for Stores Classified by Size, 
by Location, and by Rates of Stock Turnover 295 

A. Yearly Amounts of Wages and Salaries per $100 of Total 

Net Sales and per $100 of Selling Expense, for Stores 
Classified by Size, 1919 295 

B. Yearly Amounts of Wages and Salaries per $100 of Total 

Net Sales and per $100 of Selling Expense, for Stores 
Classified by Size of City in Which Located, 1919. ... 298 

C. Yearly Amounts of Wages and Salaries per $100 of Total 

Net Sales and per $100 of Selling Expense, for Stores 
Classified by Rates of Stock Turnover, 1919 301 

D. Summary 304 

V. EXPENDITURES FOR ADVERTISING 306 

1. Expenditures for Advertising for Stores Classified by Years, 

by Size, and by Location 306 

A. Yearly Amounts of Expenditure for Advertising per 

$100 of Total Net Sales and per $100 of Selling Ex- 
pense, 1919, 1918, and 1914 306 

B. Yearly Amounts of Expenditure for Advertising per 

$100 of Total Net Sales and per $100 of Selling Ex- 
pense, for Stores in 1919, 1918, and 1914, Classified 
by Size 308 

C. Yearly Amounts of Expenditure for Advertising per 

$100 of Total Net Sales and per $100 of Selling Ex- 
pense, for Stores in 1919, 1918, and 1914, Classified by 
Size of City in Which Located 308 

D. Yearly Amounts of Expenditure for Advertising per 

$100 of Total Net Sales and per $100 of Selling Ex- 
pense, for Stores Classified bv Size and by Size of City 
in Which Located, 1919, 1918, and 1914 315 

E. Summary 318 

2. Yearly Amounts of Expenditure for Advertising in Relation 

to the Amounts of Stock Carried, for Stores Classified by 

Years, by Size, and by Rates of Stock Turnover 321 

A. Yearly Amounts of Expenditure for Advertising per 
$100 of Total Net Sales and per $100 of Selling Ex- 
pense, 1919, 1918, and 1914 321 

X 



PAGE 

B. Yearly Amounts of Expenditure for Advertising per 

$100 of Total Net Sales and per $100 of Selling Ex- 
pense, for Stores Classified by Size, 1919, 1918 and 
1914 ;.... 326 

C. Yearly Amounts of Expenditure for Advertising per 

$100 of Total Net Sales, for Stores Classified by Rates 

of Stock Turnover and by Size, 1919 344 

D. Summary 347 

3. Yearly Amounts of Expenditure for Advertising in Relation 

to the Amounts of Goods Sold per Full-time Sales-person 348 

A. Yearly Amounts of Expenditure for Advertising per 

$100 of Total Net Sales and per $100 of Selling Ex- 
pense, 1919, 1918, and 1914 348 

B. Yearly Amounts of Expenditure for Advertising per 

$100 of Total Net Sales and per $100 of SelUng Ex- 
pense, for Stores Classified by Size, 1919, 1918, and 1914 351 

C. Yearly Amounts of Expenditure for Advertising per 

$100 of Total Net Sales and per $100 of Selling Ex- 
pense, for Stores Classified by Size and by Size of City 
in Which Located, 1919, 1918, and 1914 367 

D. Summary 370 

4. Yearly Amounts of Expenditure for Advertising in Relation 

to Expenditures for Rent and Investments in Fixtures, 
for Stores Classified by Years, by Size, and by Location . . . 372 
(1). Yearly Amounts of Expenditure for Advertising in Re- 
lation to Expenditures for Rent per 100 Square Feet 
of Floor Space, for Stores Classified by Size of City 
in Which Located 372 

A. Summary 374 

(2). Yearly Amounts of Expenditure for Advertising in Re- 
lation to Investments in Fixtures per $100 of Total 
Net Sales 374 

A. Yearly Amounts of Expenditure for Advertising 

per $100 of Total Net Sales and per $100 of Sell- 
ing Expense, 1919, 1918, and 1914 374 

B. Yearly Amounts of Expenditure for Advertising 

per $100 of Total Net Sales and per $100 of Sell- 
ing Expense, for Stores Classified by Size, 1919, 
1918, and 1914 377 

C. Summary 385 

VI. OTHER SELLING EXPENSE 392 

1. Yearly Amounts of Other Selling Expense, for Stores Classi- 
fied by Years, by Size, and by Location 392 

xi 



PAGE 

A. Yearly Amounts of Other Selling Expense per $100 of 

Total Net Sales and per $100 of Total Selling Expense, 
1919, 1918, and 1914 393 

B. Yearly Amounts of Other Selling Expense per $100 of 

Total Net Sales and per $100 of Total Selling Expense, 

for Stores in 1919, 1918, and 1914, Classified by Size. . 393 

C. Yearly Amounts of Other Selling Expense per $100 of 

Total Net Sales and per $100 of Total Selling Expense, 
for Stores in 1919, 1918, and 1914, Classified by Size 
of City in Which Located 393 

D. Yearly Amounts of Other Selling Expense per $100 of 

Total Net Sales and per $100 of Total Selling Expense, 
for Stores Classified by Size and by Size of City in 
Which Located, 1919, 1918, and 1914, Combined 394 

E. Summary 396 

2. Yearly Amounts of Other Selling Expense per $100 of Total 

Net Sales and per $100 of Total Selling Expense, for 
Stores Classified by Amounts of Inventory per $100 of 
Total Net Sales, 1919, 1918, and 1914 397 

3. Yearly Amounts of Other Selling Expense per $100 of Total 

Net Sales and per $100 of Total Selling Expense, for 
Stores Classified by Amounts of Sales per Full-time Sales- 
person, 1919, 1918, and 1914 398 

4. Yearly Amounts of Other Selling Expense per $100 of Total 

Net Sales and per $100 of Total Selling Expense, for 
Stores Classified by Amounts Invested in Fixtures per 
$100 of Total Net Sales, 1919, 1918, and 1914 400 

YII. RATIOS OP OPERATION FOR STORES CLASSIFIED BY RELATIVE RATES OF NET 

PROFIT PER $100 OF TOTAL NET SALES, 1919 402 

VIII. CONCLUSION 406 

IX. Index 409 



Xll 



I. INTRODUCTION 



The Bureau of Business Research 
secured the data for this study from 
the books of the members of the Na- 
tional Association of Retail Clothiers 
by means of questionnaires. 

After completing its study of Costs, 
Merchandising Practices, Advertising 
and Sales in the Retail Distribution 
of Clothing, the Bureau felt that it 
would be unfortunate if the material 
on selling expense and expense ratios 
were left in its files unanalyzed. Ac- 
cordingly, after consulting with the 
trade as to the conditions which seem 
to determine the amounts of selling ex- 
pense under different conditions of 
store operation, certain tentative 
hypotheses were set up for the pur- 
pose of determining numerically the 
amounts of selling expense for stores 
under the conditions established, and 
of discovering, if possible, means by 
which they might be reduced. The 
hypotheses which proved to be of no 
significance were abandoned. The 
others have been fully tested out, and 
it is these with which the volume 
deals. 

The plan of the study is as fol- 
lows: It includes an analysis, first, 
of total selling expense in relation to 
sales and to total operating expense ; 
second, of the amounts of wages and 
salaries in relation to sales and to 
selling expense ; third, of the amounts 
spent for advertising in relation to 
sales and to selling expense; fourth, 
of other selling expense in relation to 
sales and to total selling expense; 
fifth, of ratios of store operation for 



stores classified according to the rela- 
tive rates of profits per $100 of net 
sales for the year 1919. 

In each of these major sections, 
with the exception of the part relat- 
ing to profits, an analysis is made of 
data for stores from year to year; 
for stores classified according to the 
amounts of stock carried, as indi- 
cated by the amounts of inventory 
or average stock in relation to sales; 
for stores classified according to the 
amounts sold per full-time sales-per- 
son and to the methods by which 
salesmen were paid in 1919 ; for stores 
classified according to the rental pay- 
ments per 100 square feet of floor 
space, and the amounts invested in 
fixtures in relation to sales and to 
square feet of floor space ; and, finally, 
for stores classified according to the 
amounts spent for advertising in re- 
lation to sales. The Table of Con- 
tents outlines more fully the plan of 
the entire discussion. 

In order accurately to measure the 
amounts of selling expense and of its 
components, two types of units are 
used : First, those in which the dif- 
ferent elements of expense are ex- 
pressed in terms of sales, of total ex- 
pense, or of selling expense, as the 
case may be, and second, those in 
which conditions other than sales, 
selling expense, or total expense are 
reduced to a common basis. These 
measures, as they are used in the text 
discussion and as computed, are 
shown in the Summary. The pur- 
pose of expressing the amounts in 



various forms is to reduce, as nearly 
as possible, the different conditions 
of store operation to a unit basis. 

It has not been thought necessary, 
in view of the use of simple and com- 
posite units, to print the frequencies 
with which the different amounts of 
expense occur. The classification is 
detailed and the units of comparison 
are adjusted so as to make this largely, 
if not wholly, unnecessary. ^Moreover, 
to have printed the frequencies would 
have unduly extended the treatment. 

The analj'sis has been made with 
two points of view in mind : First, to 
determine standards or norms of ex- 
pense distribution and second, to 
establish the conditions controlling 
the amounts of expense and to meas- 
ure the extent to which they may be 
reduced. 



The analysis is necessarily detailed, 
but no excuse needs to be offered 
for this in view of the purpose which 
the Bureau, had in making the study. 
The features which distinguish "■■ 
from those in similar fields are 
number of instances included 
scope of the treatment, ar 
method follow^ The stud^ 
undertaken seriously, wi 
thought other than of subj 
a scientific analysis the data 
and of presenting +he facts ^^ 
ner most helpful to those wh 
terested in this field of dist 
It is believed that the volume 
information on the basis 
merchants may control their 
tions, test the reasonableness .^ 
expenses, and thereby actual^ 
them. 



nf: :T 



JI. SUMMARY 



It is difficult to summarize a study 

of this character within brief com- 

- ' The retail stores which are 

ied differ in size and location, in 

Viounts of their expenses, and in 

'^portant respects. In order to 

'^ct^unt of these-* differences, the 

'^'on and analysis are neces- 

Yailed and, "in some instances, 

' ^^pes of fa '^s have been deter- 

' First, the actual expense 

Jr standards for stores under 

^conditions of operation, and 

,ii^e tendencies for the amounts 

3ase or decrease from year to 

-'Uith the size and location of 

'''S, and with varying condi- 

operation. Simply to have 

ed the amounts of expense 

ores as classified would have 

an extensive summary and 

e resulted in useless dupli- 

4oreover, to have specified 

pense tendencies would have 

ed more space than could be 

1 to this phase of the study. 

'ingly, all that is attempted in 

jmary is to indicate the more 

ant amounts of expenditure 

o enumerate in a general way a 

of the expense tendencies which 

. •'■e been determined. While the 

umary is complete within itself, it 

•it not to be considered as a sub- 

te for the detailed discussion. 

^ 3 use of the Index, those who are 

^ ■ sted may readily turn to the 

..ts of expenditure for stores 

ified in different ways and, by 



following the text in connection with 
the tables, determine the limitations 
and conditions which govern the ex- 
pense tendencies. 

1. — UNITS OF MEASUREMENT USED IN 
THE TABLE AND TEXT. 

In order accurately to express the 
amounts of expenditure for selling 
expense and its components a variety 
of units has been used. These units 
are set out in the table on page 4 
under two headings: First, in the 
form of statements, as used in the 
text and tables, and second, as for- 
mulae showing the method by which 
they are computed. The common 
bases of comparison are two: total 
net sales and selling expense. With 
these, however, are combined certain 
other measures, described in the table, 
the purpose being to reduce to a unit 
basis different conditions of opera- 
tion. To illustrate: Total selling ex- 
pense and its components are ex- 
pressed in terms of $100 total net 
sales. This is equivalent, of course, 
to expressing them as percentages of 
sales. In order, however, to provide 
for the conditions under which sales 
are made, a more complex measure is 
used which will reduce the sales to a 
unit basis in terms of the amount sold 
per sales-person. Expressed in this 
form, the unit of expense becomes : 
Selling expense per $100 total net 
sales per $1,000 sold per full-time 
sales-person. In this manner only is 
it possible to reduce to a uniform 



basis stores of different size with dif- 
ferent numbers of sales-people and 
with various amounts sold per person. 



If merchants will study the ex- 
pense ratios which have been de- 
veloped and compare them with sim- 



of MAssurenent 



— S IVFLE UHITS- 



Sallina Expflnee per $100 of Total _ 
Hot S»IeB 



niscia oo'») 



tagoB ft SalarlM, Advertising, 



We^ee ft &«lu>les. Advertising* or 
other Selling Expense per ftlOO of 
Selling Expense 



_ W ft S, Adv.. 



CiSdn go's) 



T£(ln oc's) 



_ Orose llergln 
msdn OO's) 
= ISE-Coet of lldee. 



net Profit 



Saleo per tlOO of Advertlsljig 



TllSdn co'e) 

Oross UarAln— TE— Kleo* 
Cbargea-^UlBe. Incoisa 

TlfS 

VI k 5lln Oo's) 

TKS 

Mv.lln 55 V) 



Sales per Pull*tlj3e Sales-person = 



— 


FtJfTndo'lT 




SE 


sq 


Pt.dn OO'e) 






sq 


W. (in oo's) 




Flxt. Acct. 



Sq. Ft. (In OO'a) 



COMPOEITS DNITS 



£rt)«isa(E£, V k S» or AdT. ) per 
(100 of Total Met Saloa par 
AK>\jQt Sold per $1 of InTentory 



Balline Expense per $100 of Total 
Net Sale I per Anount Sold per $1 
of Average Inventory 

Averastt Inventory 



£]cpsn£e(SE, W & B, or Adv.) per 
$100 of Total Het Sales per Stock 
Turnover 

Stock Turnover 



Coet of Kerch&ndle 



Expense (« fc 6 or Adv.) per $100 
of Selllog Bxpenae per Stock 
Turnover. 



■niSCin OO'i) ' IBT. 



BJ5{la 66 ' ») ^ Av. Inv. " 
1918 InT.-H91P Inv. 



TNS(ln OO'a) 
Coat of Mdae, 



ttcpenaetSE, W ft S, or Adv.) per 
$100 of Total net Salea per 51,000 
of Sales par Pull-tlne Sales- 
person 



Boiling Ejcpenso per $100 of Total 



Expense (ff ft S or Adv.) per $100 of 
Selling Kxpense per $1»000 of Salea : 
per PuU-tlJne Sales-peraon 



- E:tpenfle TNE{1d OOft'el 

- THS(in OO'e) PTSP 



E3cpenBe{SE» W ft S, op Adv.) per 

$>100 of Total Met Sales per Sales 
per Sq. Pt* of Floor Space 



— Expense _ ^ THS 

~ TKSdn OO's) Sq. Ft. 



Expense (W ft S or Adv.) per $100 of 
Selling Expense per Salee per Sq* 
Pt. of Floor Space 



ABBRBVIATIOMS USED 



Invcntorle 

Cost of Hd8e...CoBt of merchandise sold 

Plxt. Acct. •.*. Amount Invested in fix* 

nSP.. .*...... .Kumber of fxill-tlsie 

saJes-people 
Inv Inventory taken at the 

eisd of the year 



06£ Other selling expense 

Purch Ptu'chases 

Sq« Ft... ...Total nxinber of square feet 

of floor Bpace 

SE Total celling expense 

TE Total operating expense 

THS Total net sbIos 

Turn Number of tijnes stock is 

turned 
n & 3 WagOB ard BalBrle& 



This unit is used only as an illustra- 
tion. But the same principles apply 
to all the units and a similar explana- 
tion justifies their use. 



ilar ones in their own businesses, they 
cannot help but profit by the results 
of this study. An analogy will serve 
to make the point plain. If one were 



placed in a foreign country with no 
knowledge of the unit of value, it 
would be impossible for him to com- 
prehend the prices of the most com- 
mon articles of consumption without 
first expressing them in terms of his 
own price-unit and then converting 
them into the price-unit of the for- 
eign country. That is, some standard 
must be used. Until recently, retail 
establishments have had no standards 
by which they could measure their 
own operating expenses and their 
merchandising practices. One pur- 
pose of this volume in the field of sell- 
ing expense is to supply such stand- 
ards. 



I. AMOUNTS OF SELLING EXPENSE AND 

ITS COMPONENTS, WAGES AND SAL- 
ARIES, ADVERTISING, AND OTHER 
SELLING EXPENSE, FOR STORES 
CLASSIFIED BY YEARS, BY SIZE, AND 
BY LOCATION. 

In the following summary of sell- 
ing expense and its components, the 
amounts are expressed in terms of 
sales, total expense, and selling ex- 
pense, use being made of the simple 
and complex units which are de- 
scribed above. The tables and charts 
refer only to the conditions named 
therein. It is impossible briefly to 
set out all of the conditions which 
determine the amounts of selling ex- 



TABLE A 



eu«ifi«a 

Total 
Hot S«lea 


Classlflsd 
Soiling 
ficpoiuos 


Amounts of Clasairied Selling Expenses per $100 lof Total Ket Sale* 


1919 


19ia 


1914 


(in OOO'b) 


Actual 1 

$0 $2 


Oraphl* 
$4 $6 $3 $10 $12 


1 Graphle 
Actual 1 

$9 $3 $4 $6 $8 $10 $12 $1 


1 Oraphlo 
Actual 1 
1 $0 $2 $4 $6 $8 $10 $12 $14 




Total 


$10.44 




$10.94 




$11.48 

7.52 
2.61 
I.J5 

9.1s 

6.37 
1.S6 
0.92 















Wagea 1 Salarloa 
Advertising 

Other 


6.98 
2.22 
1.24 


7.37 
2.22 
l.SS 

6.09 










Avoraco 


m 


— 




Total 


6.77 






3- 




tJniSar $40 


Wflgea h. Salarlea 

Aivertlaln^ 

Other 


4.50 
1.46 
0.81 


s.6e 

1.S3 
0.88 


7 




Total 


7.64 


».43 

6. 55 
1.65 
1.23 


11.14 

7.58 
2.23 

1.53 








- 






TIaga* It Salaries 

Advertising 

Other 


6.50 
1.35 
0.81 




t40 to $S0 






■ 


^ 




Total 


10.48 


10.88 


11. S5 








- 






Wages !i Salaries 

Advertising 

Other 


7.18 
2.04 
1.26 


7.1a 
2.41 
1.38 


7.66 
2.96 
l.SS 




|8o to tieo 






■■ 


I" 




Total 


U.44 


12. sa 


13.93 














Wagea h. Salaries 

Advertising 

Other 


7.40 
S.6S 
1.S9 


8.4« 
2.59 

1.S5 


8. 48 
5.62 

i.es 




|180 & OTOP 


— 


— 


— 



pense and its components, and the 
reader is urged not to be contented 
with reading only the Summary, but 
to consult the detailed treatment 
under the respective headings. 

In the body of the text, different 
groups of stores are used, the pur- 
pose being to utilize all the informa- 
tion which is available for the com- 
bined and the individual years. In 
the Summary, however, in most 
cases, the tables show data for the 
three years 1919, 1918, and 1914, 
combined. In some instances it is 
possible to use but one year and in 
such cases both the tables and the dis- 
cussion indicate this fact. 

In the present section and in Tables 
A, B, and C, the amounts of selling 
expense are expressed in terms of 
sales. Subsequent discussion relates 
these amounts to total and to selling 
expense. 

A. — Amounts of Selling Expenses per 
$100 Total Net Sales, for Stores 
Classified hy Size and hy Loca- 
tion. 

The analysis of selling expense and 
its components is based upon the 
records of 154 stores for the years 
1919, 1918, and 1914. In 1914 selling 
expense constituted $11.48 per $100 
total net sales. In 1918 it was $10.94 ; 
in 1919, $10.44. In 1914, $7.52 of 
the $11.48 was spent for wages and 
salaries, $2.61 for advertising, and 
$1.35 for other selling expenses. In 
1918 these amounts were $7.37, $2.22, 
and $1.35. In 1919 they were, re- 
spectively, $6.98, $2.22, and $1.24. 
For the combined years, out of a 



total selling expense of $10.82, $7.22 
went to wages and salaries paid to 
salesmen, $2.30 to advertising, and 
$1.30 to other selling expenses. Table 
A shows the amounts of total selling 
expense and its components for stores 
classified by size, for the years 1919, 
1918, and 1914. 

Table A shows that the amounts of 
selling expense and of its components 
in terms of sales in each of the years 
increase as the stores increase in size. 
Moreover, this condition obtains for 
the combined years as is shown in 
Table B. In these years, total selling 
expense for the stores with annual 
sales under $40,000 is $8.49. For 
those with sales of $40,000 to $80,000, 
it is $9.34; for those with sales of 
$80,000 to $180,000, it is $10.89 ; and 
for those with sales of $180,000 and 
over, $12.05. The amounts of total 
selling expense and its constituent 
parts are shown in Table B. 

For the combined years the total 
selling expense per $100 total net 
sales is larger for the stores in the 
large cities — those with population of 
40,000 and over — than for those in 
the small cities — those with popula- 
tion under 40,000. The average for 
the stores in the first group is $12.17 
and for those in the second group, 
$9.40. Moreover, for all stores, each 
element of expense is larger for the 
stores in the large, than for those in 
the small cities. When the stores are 
classified b}' size, total selling expense 
for each group is larger for the stores 
in the large than for those in the 
small cities. This condition generally 
obtains for each element of expense. 



TABLE B 





Cla30irie<! 
Selling 
Expenees 


— ^ - ■ — — " 

AwnmtB of Claaeined bpenaea per JlOO of Total Vet Selea 


Classiriod 

Total 
Ret SaloB 


Total (Average) 


ClUea nth Population 
unilor 40,000 


Cltlea with PopalaAloo of 
40,000 ft over 


<lll ooo'o) 


1 Oraphlo 1 1 Oraublo 
Actual 1 1 Aetiaei | 

to »2 ^4 (6 $8 $10 112 $14 $0 «2 $4 tS $9 llO »W 


1 Oraphla 
Actual 1 

l9 »;««(« la tio »i2 IM 




Tot>l 


tlO.82 




$9.40 

6.6B 
1.7B 
0.8S 

8.M 

5.73 
l.M 
O.SZ 








Anngs 


Wegee k Salaries 

Advertising 

other 


T.22 
2.50 
l.SO 


7 




7.72 

S.80 
1.65 

10.53 


— 




Total 


e.4s 




Ikidar $40 


Wegsa k Selariee 

Admrtlalng 

Otber 


6. SI 
1.70 
0.88 


"^^"" 


8.13 
1.77 
0.49 


■ 




*ot«l 


9.94 


e.76 
e.3o 

1.60 
0.86 


ll.iS 






- 


- 




•40 to $30 


■agea k Salarlta 

Aa»ertlBlng 

Other 


6. SI 
1.72 
1.11 


7.03 

e.24 
i.se 


7 




Total 


io.e» 


lO.U 


12.32 

7.36 
2.81 
2.05 




tso to tieo 


T,'aEoe ft £ftlarlf8 

AdverllBlng 

Other 


7.2« 
S.ti 
1.90 


- 


7.U 

l.ae 

1.02 


7 


— 




Tctr.l 


12.0S 


10.47 

7.84 
1.68 
0.8S 






ilB'j & ov-,r 


nbgoB ft Sclarloa 

Ad»ertlBlng 

Other 


7.84 
8.71 
l.SO 


- 


- 


7.84 
2.85 
1.S7 


— 



The amounts for the stores in the 
two city-groups are given in Table B. 
In Table C the amounts of selling 
expense and of its components for 
stores classified by size are shown per 
$100 total net sales expressed in dif- 
ferent units. The table gives the 
number of stores to which the figures 
apply, the years which are involved, 
and the table numbers in the text in 
which the detail, under more elab- 
orate classifications, may be found. It 
is imnecessary to indicate the 
amounts, although for summary pur- 
poses it may be well to indicate their 
direction of change. Section I of the 
table shows that the amounts of sell- 
ing expense, of wages and salaries, of 



advertising, and of other selling ex- 
pense increase as the stores increase in 
size. To this general rule there are 
no exceptions. 

B. — Amounts of Selling Expenses per 
$100 Total Net Sales per Stock 
Turnover, for Stores Classified 
by Size. 

Section II of Table C shows the 
amounts of selling expense, wages and 
salaries, and advertising per $100 
total net sales per stock turnover. As 
the stores increase in size these 
amounts increase. The result of ex- 
pressing them on a per-turn basis is 
to modify the rate at which the ex- 
penses increase for stores of increas- 



TABLE C 





Aaoiuti ir Cluitriod S«Ulef IxpctiM 




I 


II 


III 


IV 


V 


CUsslflod 

Total 
(•t Salol 

(Is OOO'l) 


*tr tlOO of Total lot Salo* 


rar lloo of Total lat 

Sales per Stock 

TumoTar 


far $100 of Total Hat 
Sal^s par Aabunt Sold 
per $1 of InTectorj 


?ar ♦lOO of Total lat 

Sa'.ei per ll.OOO of 

Sales per Pull-tiaa 

Salea.paraoo 


Per tlOO or Total I*t 

Ealaa fr SilM 

yar E<i. Ft. 




Total 

Salilns 


■a««l k 
Salarlea 


tl>lii4 


otbsr 


Tota 
SaUlcg 

fitpenea 


Wajal t 

Salarlae 


IdTor- 

tliUig 


Total 
Sailing 


lagai k 

Salarlaa 


tlalD« 


Total 
Ballliic 
Bxpenao 


Wagaa t 

Salaries 


AdTer- 

tlsls( 


Total 
Sailing 
bpana 


Wage* h 
Salaries 


Averts 


tio.oz 


r.M 


»2.S0 


tl.so 


»4.C2 


13.03 


11.02 


t4.oe 


♦2.74 


♦0.87 


♦0.67 


♦0.4S 


♦0.14 


♦0.39 


♦0.2« 


»« to «ao 
*ao to tiso 
$U0 i o<«r 


8.49 
9.M 

10.69 
U.OS 


S.91 

6.gi 

7.M 


1.70 
1.72 

a.M 

t.n 


0.S8 
lAl 
1.90 
1.90 


4.00 
4.14 
6.9S 
4.0« 


Z.S4 

«.9e 

3.61 
2.93 


0.78 
0.79 
1.09 
1.00 


4.74 
4.26 
4.39 
3.38 


3.31 
3.00 
8.90 
2.21 


0.»4 
0.77 
0.94 
0.76 


0.82 
0.69 
0.69 
0.60 


0.98 
0.48 
0.49 
0.39 


0.19 
0.12 
0.14 
O.IS 


0.49 
0.3S 
0.42 
0.33 


0.31 
0.27 
0.28 
0.21 


■iKSMr or 
Btcrt-TWra 


4 
I 7". 

4<a 


US 
9 rr: 
4«t 


su 

S p-.. 
4S2 


3 jr.. 

4«2 


39 

1919 

es2 


144 
1919 


249 

1919 
282 


26 
3 rr*. 

447 


149 
Syr.. 

447 


239 

9 jra. 

447 


49 
a jra. 

438 


162 
9 m. 
438 


299 

3 rn. 
438 


77 
1919 
303 

. .J 


184 
1919 

303 



ing size. The data refer to tfie year 
1919 alone and include the records of 
282 stores. Generally speaking, the 
larger the store, the faster is the rate 
at which stock is turned. Accord- 
ingly, when the amounts for stores of 
a given size are divided by the stock 
turnover rates, the general effect is 
to modify or to reduce the high sell- 
ing expenses associated with large 
stores. 

C. — Amounts of Sellitig Expenses per 
$100 Total Net Sales for the 
Amount Sold per $1 of Invent 
tory, for Stares Classified by 

Size. 

Section III of Table C shows for 
the combined years the amounts of 
selling expense, of wages and salaries, 
and of advertising per $100 of sales 
for the amount sold for each $1 of 
inventory. The details are supplied 
for 149 stores, classified by size. As 
the stores increase in size, each ele- 
ment, as well as the total selling ex- 
pense, decreases. This condition 



holds for each of the years also. The 
larger the store, generally speaking, 
the smaller the inventory per $100 of 
sales. Accordingly, when the different 
expense items are reduced to a basis 
of sales for each dollar of inventory, 
the amounts decrease. 

D. — Amounts of Selling Expenses per 
$100 of Total Net Sales per 
$1,000 Sold per FuU-Time Sales- 
Person, for Stores Classified by 
Size. 

Section IV of Table C shows for the 
combined years 1914, 1918, and 1919, 
the amounts of selling expense and 
of its components per $100 of sales 
for each $1,000 sold per full-time 
sales-person. The records of 146 
stores classified by size are included 
for this period. As the stores in- 
crease in size, each expense and the 
total decrease. This condition holds 
also for each of the years. IMoreover, 
from year to year, from 1914 to 1918 
to 1919, each expense element when 
measured in this unit decreased. 



E. — Amoimts of Selling Expenses per 
$100 Total Net Sales for the 
Amount Sold per Square Foot of 
Floor Space, for Stores Classified 
by Size. 

In Table C, Section V, the amounts 
of total selling expense and wages and 
salaries are shown for 1919, when ex- 
pressed per $100 total net sales for the 
amount sold per square foot of floor 
space. The records of 303 stores, 
classified by size, are used to deter- 
mine these averages. As the stores 



increase in size, the amounts show no 
regular tendency to increase or to 
decrease. 

F. — Amounts of Selling Expense per 
$100 of Total Expense far Stores 
Classified by Years, by Size, and 
by Location. 

Chart I shows graphically for the 
combined and the individual years, 
1914, 1918, and 1919, the relations 
which selling expense bears to total 
operating expense. For the years 



CHART I 

GRAPHIC REPRESENTATION OF THE AMOUNTS WHICH SELLING AND OTHER EXPENSE 
FOR 154 STORES CONSTITUTE OF EACH $100 OF TOTAL OPERATING 
EXPENSE, 1919, 1918, AND 1914 
Ysara 



•0 



«10 



120 



tzo 



140 

L_ 



150 



160 



♦ 70 



$80 



$90 

L_ 



1100 
1 



Total 
(Average) 



^^^^^^^^^■^^w^^^^^^^^H 


49.91 



1919 



^^^^^^^^^^^^^^^^^^^^1 


48.94 



1918 



1914 




$100 



Selling Sspsnas 



Other Expense 



combined, out of every $100 of total 
operating expense, selling expense 
constitutes $50.09. In 1914 the cor- 
responding amount was $48.86 ; in 
1918, $49.63; and in 1919, $51.06. 
That is, from year to 3'ear, selling 
expense in relation to total operating 
expense increas?d. 

Chart II shows graphically the 
amounts of selling expense per $100 



of total expense for stores classified 
by size. The average amount for the 
stores with sales under $40,000 is 
$41.13 ; for those with sales of $40,000 
to $80,000, it is $46.10 ; for those with 
sales of $80,000 to $180,000, $51.49; 
and for those with sales of $180,000 
and over, $52.67. That is, the 
amounts increase as the stores in- 
crease in size. 



CHART II 

GRAPHIC REPRESENTATION OP THE AMOUNTS WHICH SELLING AND OTHER EXPENSE 
CONSTITUTE OF EACH $100 OF TOTAL OPERATING EXPENSE, FOR STORES 
OP DIFFERENT SIZE, 1919, 1918, AND 1914, COMBINED 
Classiried 

TotsO. 
Bet Sales 
(In OOO'a) 



to 



♦10 



$20 



ISO 



UO 



160 



160 



♦70 



♦80 



|eo 



♦100 



Total 
(Average ) 



^^^^^^^^^^^^^^^^^^^^^^H 


49.91 



Under ^0 



il.lS^^^^^m S8.87 



$40 to $80 




$80 to ilBO 



[51.491 



48.61 



|180 * over 



^^^^^^^^^^^QzTgt^^^^^^^^^^^I 


47.SS 




Dellir.g Exrenoe 



Other Expense 



10 



CHAET 111 

GRAPHIC REPRESENTATION OF THE AMOUNTS WHICH SELLING AND OTHER EXPENSE 

CONSTITUTE OF EACH $100 OF TOTAL OPERATING EXPENSE, FOR STORES OP 

DIFFERENT SIZE AND LOCATION, 1919, 1918, AND 1914, COMBINED 

ClBselfled Slao 

Totsil of 

Bet Sales City 

(In OOO'b) (Is OOO'b) 

to tlO $20 {30 |40 ISO teo (70 tso tso llOO 



Total 
(Average ) 



^^^^^^^^^^^^^^^^^^^^^^H 


61.02 



, 40 k OTCl' 



Under |40 



Ibder 40 



4p ft over 




$40 to teo 



Ttader 40 




Hiil^^^^^^^^H 



' Qidsp 40 



^0 to $180 < 




' Under 40 



tl80 & over < 



63.39^^^^^^^^^^^ 4£.61 




$10 *20 HO MO tso UO fO {-80 t90 tlOQ 



■* 



Solllnc acrens* 



other Erpeoee 



11 



Chart III shows graphically, for 
the three years 1914, 1918, and 1919, 
combined, the amounts of selling ex- 
pense per $100 of total operating ex- 
pense for 15-4 stores, classilied by size 
and further by the size of the city in 
"vvhich located. For stores within a 
given size-group, the amounts of 
selling expense per $100 of total oper- 
ating expense, in every ease but one, 
are larger for those in small, than for 
those in large cities. For all the 
stores, irrespective of size, the average 
amount is larger for the stores in the 
large than for those in the small 
cities. This seeming contradiction is 
due to the fact that selling expense 
in relation to total operating expense 
is higher in large than in small stores 
and that in the groups used, there is 
relatively a larger percentage of large 
stores in the large than in the small 
cities. 

Table D, Section I, shows the 

amounts of selling expense per $100 

total operating expense. These 

amounts for the 154 stores for the 

TABLE D 





AnountB of Total Selling Expense 


Cltaairiod 


I 


II 


III 


Vet Salea 
(in OOO'i) 


Far tlOO of 
Total Bxpenae 


Tar 4100 of 

Total Expense 

par Stock 

Turnover 


Per }100 of 

Total Expense 

per $1,000 of 

Sales per 

Pull-tUae 

Sales -person 


Average 


960.09 


$22.24 


♦3.U 


Onder $40 
$40 to tSO 
|eo to %1B0 

tlSO at over 


41.13 

46.10 
S1.4S 
62.67 


25.27 
25.53 
27.19 
is". 80 


4.00 
5.44 
3.07 
2.63 


Table SiBiber 

Yewe 

ItaOwr or 
8t<ir*-r«*r« 


S yra. 
««2 


67 
1919 

289 


59 
5 yra. 

4se 



three years combined increase as 
stores increase in size. This condition 
holds also for each of the years 1914, 
1918, and 1919. From year to year, 
the amounts of selling expense per 
$100 total operating expense increased 
from $48.86 to $51.06, as shown in 
Chart I. The average amount for the 
three years is $50.09. 

G. — Amounts of Selling Expense per 
$100 Total Expense per Stock 
Turnover, for Stores Classified 
by Size. 

Section II of Table D shows for 
269 stores for 1919, classified by size, 
the average amounts of selling ex- 
pense per $100 total operating ex- 
pense per stock turnover. As the 
stores increase in size, these amounts 
increase for stores with sales less than 
$180,000. For the group of stores 
with sales of $180,000 and over, the 
average is considerably smaller than 
for any of the other groups. This is 
due primarily to the greater rapidity 
with which these stores in this year 
turned their stock. 

H. — Amounts of Selling Expense per 
$100 Total Expense per $1,000 
Sold for Each Full-Time Sales- 
Person, for Stores Classified by 

Size. 

Section III of Table D shows the 
amounts of selling expense per $100 
total expense, expressed in terms of 
$1,000 worth of goods sold for a full- 
time sales-person. The records of 146 
stores for the combined years, clas- 
sified by size, are available for study 



12 



from this point of view. As the stores 
increase in size, the expenditures ex- 
pressed in this unit decrease from a 
maximum of $4.00 to a minimum of 
$2.63. Similar decreases hold for each 
of the three years. 

I. — Amounts of Wages and Salaries, 
of Advertising, and of Other 
Selling Expense per $100 of 
Total Selling Expense, for 
Stores Classified by Years, by 
Size, and by Locatio7i. 

Chart IV shows graphically for the 
combined and the individual years 



1914, 1918, and 1919, the relations 
which wages and salaries, advertising, 
and other selling expense bear to 
total selling expense. For the com- 
bined years, essentially two-thirds of 
selling expense is attributable to 
wages and salaries paid to salesmen. 
Moreover, this proportion remains 
essentially constant for each of the 
different years. Approximately one- 
fifth of all the selling expenses goes 
for advertising. Between 1914 and 

1918, the proportion for this purpose 
decreased and between 1918 and 

1919, increased. For the combined 



CHART IV 

GRAPHIC REPRESENTATION OF THE AMOUNTS WHICH WAGES AND SALARIES, ADVER- 
TISING, AND OTHER SELLING EXPENSE FOR 154 STORES CONSTITUTE OF 
EACH $100 OF TOTAL SELLING EXPENSE, 1919, 1918, AND 1914 
Tears 



*0 



*10 



120 



ISO 



140 



160 



$60 



»70 



$80 



t90 



tlCO 



lotaX 
(Average ) 



^M^^^^^^^^^^'^^^^^^^^^^^^B 




:;; 




l\ 


--+ 

— h 


12.06 


^^^^^^^^^^^^^^■66^69^^^^^^^^^^^^^^B 




::: 


21.25 

m 


i 


i 



1919 



^■■■■^■■^^^■■■tart^BArillHMta^^B^MH^B^ri^^^^^^^^^B 




iiimii 


T 








^^^^^^^^^^^^^^^^^^^^^^IH^^^^^^^^^^^^^^^^^^^^^B 




mm 


+ 






^^^^^^^^^^^^^^H^^eo^^^^^^^^^^^^^^H 




: 21.26 

m 


1 




s 


11.94 



1918 




i:i4 




*0 *10 $20 »^0 up ♦60 S60 tTO $80 ^90 $ipo 



ITsges & Salaries 



AdTsrtlalng 



Other Selling 

Expense 



13 



years, other selling expenses roughly 
constitute one-eighth of the total. 

Chart V shows graphically for 154 
stores classified by size, for the com- 
bined years 1914, 1918, and 1919, the 
relative proportion of total selling ex- 
pense attributable to wages and sal- 
aries, to advertising, and to other 
selling expense. As the stores in- 



crease in size, the proportions for 
wages and salaries decrease. The pro- 
portions exi)ended for advertising 
and for other selling purposes in- 
crease. 

Chart VI shows graphically the 
amounts of wages and salaries, adver- 
tising, and other selling expense per 
$100 of total selling expense for the 



CHART V 

GRAPHIC REPRESENTATION OF THE AMOUNTS WHICH WAGES AND SALARIES, ADVER- 
TISING, AND OTHER SELUNG EXPENSE CONSTITUTE OF E.\CH $100 OF TOTAL 
SELLING EXPENSE, FOR STORES OF DIFFERENT SIZE, 1919, 1918, 
AND 1914, COMBINED 

ClsBdlfied 

Total 
Ket Sales 
(In OOO'b) 



Tctal 
(Average ) 



tlO 



120 



ISO 



140 



tso 



teo 



170 



•80 



•90 



♦ipo 



^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^B 




21.26 




12.06 



Under $40 



^^^^^^^^^^^^^^^^^^^^H 


1 


^m 


::::::::::: 




^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^H 


1 


±19.99 

lift 


:::::::|:: 


10.45 



^0 to fee 













^^^^^^^^^^^^^^■dsTeT^^^^^^^^^^^^^^^^E 




mm 

; 18.56 




11.96 



|eo to $180 



^^^^^^^^^^^^^^^peTsT^^^^^^^^^^^^^^B 


;:;i;;: 


■I 

21.43 

m 


::: 


1 

m 


11.96 



$180 & ever 




to no 120 tso $40 t50 }60 t70 t60 t90 tlOO 



Traces ft Seler'.eo 



Advertising 



Other Selling 
Expense 



14 



CHART VI 

GRAPHIC REPRESENTATION OF THE AMOUNTS WHICH WAGES AND SALARIES, ADVER- 
TISING, AND OTHER SELLING EXPENSE CONSTITUTE OF EACH $100 OF TOTAL 
SELLING EXPENSE, FOR STORES OF DIFFERENT SIZE AND LOCATION, 
1919, 1918, AND 1914, COMBINED 

ClasBlflee 8lt» 

Total of 

Nat Sales , City 

(In OOO'b) (in OOO'b) 



|0 »10 «20 t30 UO 



Total 
(Average ) 



. 40 & orer 



S50 $60 S70 tSO t90 tlOQ 




■ 














I^^^^^^^^^^^^^^^^^^H^H^^HHHHi^E 


:: 


* 


'■^W^4 


■■--w^ 


IS.iiO 


|^^^^^^^^^^^^H63^41^^^^^^^^^^H 








"tr 




^^^^^^^^^^^^^^^^^^^^^^■J 


11 


u 


1 .Il!ll!!in 


It 







Ooder $40 < 



^^^H^I^^^^^^^HesTss^^^^^H^^^^^^^B 




i 20.28f 




11.09 




Under 4C 



#40 to $80 <; 







m 


::;!:|- 


«.34 


^^^^^^^^^^^^^^^^ITsi^^^^^^^l^^^^^^^B: 


S 


18.25 

m 







Fff 






iiHiinii- 






^^^^^^^^^^H^^^BesTeo^^^H^^^^^^^E 


;: 


I 




18.64:::: 




17.86 



' Ibder 40 



$80 to $180 < 





1 


^ 


PI 




9.93 


^^^^^^^^^^^^^^^V70^39^^^^^^^^^^^^^^B: 


:: 


1 


19.63 





. 40 & ovei' 




$180 & over < 



. 40 & over 




$60 ?60 t70 $80 tfO tlcp 



fagos t Salnrles 



AdTBrtlsing 



Other Selling 
Ebcpenee 



15 



TABLE E 





Asovcta of Claeslfled Selling Er.psT^se 


Classified 


I 


II 


III 


Total 
Het Sales 
(la OOO'b) 


Per $100 of Belllne Expense 


Per tlCO of Selling 

Ej-.pen:o per Stock 

Turnover 


Per (100 of Selling Expense 
par (1,000 of Sales per 
Pull-tlrco Sales-person 




Salaries 


Advertising 


Other 


Waces t 
Ealnrlea 


Advertising 


Wases k 
Snlarles 


Advertising 


ivn-age 


(66.69 


(21.25 


(12.06 


(29.80 


(10. DC 


(4.14 


(1.31 


ODder |40 
(40 to f80 
(S3 to 1 150 

fl£0 k oTor 


69.56 
69.67 
66.61 
65.06 


19.99 

le.u 

21.43 
22. 5S 


10.45 

u.9a 

11.96 
12.41 


47.53 
39.96 
35.24 
23.36 


12.77 

10.16 

10.54 

9.03 


6.72 
5.24 
4.06 
3.21 


1.90 
1.36 
1.2a 
1.11 


Tabl* >hab«r 

Xeaxi 

HuEber of 
Store-yeari 


las 

3 yra. 
462 


216 
S yra. 
462 


286 
5 yra. 

462 


166 
191S 

26S 


259 
1919 

269 


168 
3 yra. 

438 


261 
S jra. 

436 



three years, 1914, 1918, and 1919, 
combined, for 154 stores classified by 
size and further by the size of the 
city in which they are located. The 
proportions of total selling expense 
attributable to wages and salaries for 
all groups of stores, except one, when 
classified by size, are less in stores in 
the small than in those in large cities. 
The proportions of total selling ex- 
pense which are attributable to adver- 
tising are higher for the stores in 
the large cities for each size-group 
except one. The same condition 
characterizes the miscellaneous sell- 
ing expense. For all of the stores in 
the small cities, roughly 71 per cent, 
of the selling expense is paid out in 
the form of wages and salaries, 19 per 
cent, in the form of advertising, and 
10 per cent, as other selling expense. 
In stores in the large cities, the cor- 
responding percentages are 63, 23, 
and 14. 

In Table E, Section I, the amounts 



of wages and salaries, advertising, 
and other selling expenses per $100 
of selling expense are sho^vn, for the 
combined years, for 154 stores, clas- 
sified by size. As the stores increase 
in size, wages and salaries decrease, 
while advertising and other selling 
expense increase. Moreover, this 
condition obtains for each of the 
years. 

J. — A'mou7its of Wages and Salaries 
and of Advertising per $100 
Selling Expense per Stock Turn- 
over, for Stores Classified hy 

Size. 

In Section II of Table E the 
amounts of wages and salaries and of 
advertising per $100 of selling ex- 
pense per stock turnover for 1919 are 
shown for 269 stores, classified by size. 
The amounts of both expenses de- 
crease as stores increase in size. The 
direction of change in the amounts of 
wages and salaries, when expressed 



16 



in this form, agrees with that shown 
for wages and salaries when measured 
in terms of selling expense alone. The 
direction of change for advertising, 
expressed in this unit, is inverse to 
that shown for the amounts in terms 
of selling expense alone. 

K — Amounts of Wages and Salaries 
and of Advertising per $100 of 
Selling Expense per $1,000 Sold 
per Full-tvme Sales-person, far 
Stores Classified by Size. 

Table E, Section III, shows the 
amounts of wages and salaries and of 



three years holds for each year treated 
separately. 

3. — AMOUNTS OF SELLING EXPENSE AND 
ITS COMPONENTS, WAGES AND SAL- 
ARIES AND ADVERTISING, IN RELA- 
TION TO THE AMOUNTS OF STOCK 
CARRIED. 

The method of classifying the 
stores, the expenses of which are 
summarized in this section, is accord- 
ing to the amounts of inventory 
which they had per $100 of total net 
sales. In view of the fact that each 
of the elements of expense is a func- 



TABLE F 





Aaujonts of Classified Selling Expense 


inount of 

loTsntory 

par $100 of 


I 


II 


III 


Total 
Rat Salas 


Far $100 of Total Net Sales 


Per $100 of Total Bet Sales 
per Stock Tamovor 


Fer $100 of Total Net Sales per 
AjBount Sold per $1 of Inventory 




Total 
Selling 
Srponse 


Wages k 
Salaries 


Advertising 


Total 
Selling 
Kxponee 


Wages fe 
Salaries 


Advertising 


Total 
Sailing 
Expense 


Wages k 

Salaries 


Advertising 


Averaga 


$9.S7 


#6.59 


$1.69 


$4.14 


$2.98 


$0.76 


$4.26 


$5.00 


$0.77 


Under IBO 
tZO to $40 
(to to $60 
$60 k over 


7.57 
9.21 

e.ei 

8.57 


5.10 
6.10 
6.94 
6.97 


1.22 
1.77 
1.67 
1.75 


1.59 

5.24 

\ 
5.25 


0.85 
2.24 

5.89 


0.J5 
0.67 

0.85 


1.29 
2.76 
4.81 
6.69 


0.89 
1.85 
5.47 
4.88 


0.21 
0.5S 
0.84 
1.25 


Table Number 

Years 

Huaiber of 
Store-years 


22 
5 7TB, 

16S 


139 

5 yrs. 
165 


252 

S yrs. 
166 




59 
1919 

106 


144 
1919 

106 


245 
1919 

106 


26 
5 yrs. 

165 


145 

5 yrs. 
165 


856 
5 yrs. 

165 



advertising, expressed per $100 of 
selling expense for each $1,000 sold 
per full-time sales-person, for stores 
classified by size. That is, the amounts 
are reduced to a unit basis of selling 
expense and of salesmen's sales. Ex- 
pressed in this form, both amounts 
decrease as stores increase in size. 
The data refer to the three years 
1914, 1918, and 1919, combined. The 
direction of change shown for the 



tion of the size of the stores, a single 
group, viz., stores with sales of $40,- 
000 to $80,000, is selected for pur- 
poses of summary. 

A. — Amounts of Selling Expenses per 
$100 Total Net Sales, for Stores 
Classified by Amounts of Iiv- 
vefitory per $100 Total Net Sales. 

For a group of stores with annual 
sales of $40,000 to $80,000, as shown 



17 



in Table F, Section I, the amounts of 
selling expense, of wages and salaries, 
and of advertising, based upon three 
years' experience, increase as the in- 
ventories per $100 total net sales in- 
crease. For other size-groups clas- 
sified by inventories in relation to 
sales, the amounts of total selling ex- 
pense for the combined years increase. 
The amounts of wages and salaries 
and of advertising, however, are un- 
certain as to direction of change. 
AVhen the stores are classified, irre- 
spective of size, but according to the 
amounts of inventories in relation to 
their sales, each element of expense, 
and also the total, decreases with in- 
creasing inventories. Moreover, the 
conditions for the three years gener- 
ally hold for each of the individual 
years. 

B. — Amounts of Selling Expenses per 
$100 Total Net Sales per Stack 
Turnover, for Stores Classified 
by Amounts of hiventory per 
$100 Total Net Sales. 

Table F, Section II, shows for 106 
stores, having sales of $40,000 to 
$80,000 in 1919, the amounts of sell- 
ing expense, wages and salaries, and 
advertising, measured in terms of 
$100 sales per stock-turnover. The 
stores are classified by the amounts of 
inventory per $100 total net sales. 
As the inventories increase in size, 
the different expenses also increase. 
That is, they are relatively low in the 
stores with low inventories. This con- 
dition also holds for stores in other 
size-groups and for all stores, irre- 
spective of size. 



C. — Amounts of Selling Expenses per 
$100 Total Net Sales for the 
Amount Sold per $1 of Inven- 
tory, far Stares Classified by 
AmouJits of Inventory per $100 
Total Net Sales. 

Table F, Section III, shows for a 
group of stores for the three years 
combined, the amounts of selling ex- 
pense, wages and salaries, and adver- 
tising for stores having sales of $40,- 
000 to $80,000, classified by the 
amounts of their inventories per $100 
total net sales. As the size of the in- 
ventories expressed in this form in- 
creases, the amounts of each of the 
expenditures increase. Moreover, this 
condition holds for the stores in the 
other size-groups and for all stores, 
irrespective of size. It also holds in 
each of the different years. From 
year to year, each of the different ele- 
ments of expense, expressed in thi^ 
form, decreased. 

D. — Amounts of Selling Expense per 
$100 Total Expense, for Stores 
Classified by Amounts of Inven- 
tory per $100 Total Net Sales. 

Table G, Section I, shows the 
amounts of selling expense per $100 
of total expense for a group of stores 
with sales from $40,000 to $80,000, 
for the three years 1914, 1918, and 
1919, combined, classified by the 
amounts of inventory per $100 total 
net sales. As the size of the inven- 
tories increases, the amounts of sell- 
ing expense decrease, if the group of 
stores having inventories less than 
$20 per $100 total net sales is omitted. 



18 



TABLE G 





Amounts of Total 
Selling Expense 


Amounts of Classified Selling Expense 


Amount of 
Inventory 


I 


II 


III 


per $100 of 

Total 

Net Sales 


Per $100 of 

Total 
Expense 


Per $100 of Selling 
Expense 


Per $100 of Selling Expense 
per Stock Turnover 




Wages & 
Salaries 


Advertising 


T/ages & 
Salaries 


Advertising 


Average 


$46.41 


$70.27 


$18.06 


$39.96 


$10.22 


Under $20 
$20 to $40 
$40 to $60 
$60 & over 


37.62 
43.27 
46.39 
45.13 


69.21 
66.23 
72.20 
72.83 


16.56 
19.20 
17.32 
18.34 


14.50 
31.45 

49.70 


5.64 
9.42 

10.91 


Table Number 

Years 

Number of 
Store-years 


32 
3 yra. 

165 


149 
3 yrs. 

165 


241 

3 yrs. 

165 


153 

1919 

106 


246 

1919 

106 



A similar condition holds for the 
stores in each of the other size-groups, 
as well as for stores classified by in- 
ventory, but without relation to size. 
iMoreover, the condition established 
in this table holds for each of the 
three years 1914, 1918, and 1919. 

E. — Amounts of Wages and Salaries 
and of Advertising per $100 
Selling Expense, for Stores 
Classified hy Amounts of Inven- 
tory per $100 Total Net Sales. 

In Table G, Section II, the amounts 
of wages and salaries and advertising 
are shown per $100 selling expense 
for a group of stores, for the three 
years 1914, 1918, and 1919, combined, 
classified by the amounts of inven- 



tories per $100 total net sales. As the 
amounts of inventory in relation to 
sales increase, wages and salaries in- 
crease, while advertising expenditures 
do not show a uniform tendency either 
to increase or to decrease. For other 
groups of stores, classified by size, 
the direction of change in the amounts 
of wages and salaries and of advertis- 
ing is uncertain. For all the stores, 
irrespective of size, the amounts of 
wages and salaries increase, while the 
amounts of advertising tend neither 
to increase nor to decrease as the in- 
ventories in terms of sales increase. 
In each of the different years for both 
elements of expense, the nature of the 
change with increasing inventories is 
uncertain. 



19 



F. — Amounts of Wages and Salaries 
and of Advertising per $100 of 
Selling Expense per Stock Turn- 
over, for Stores Clmsified hy 
Amounts of Inventory per $100 
Total Net Sales. 

In Table G, Section III, the 
amounts of wages and salaries and of 
advertising per $100 selling expense 
are shown for 106 stores in 1919, clas- 



4. — AMOUNTS OF SELLING EXPENSE AND 
ITS COMPONENTS, WAGES AND 
SALARIES, ADVERTISING, AND OTHER 
SELLING EXPENSE, IN RELATION TO 
THE AMOUNTS SOLD PER FULL- 
TIME SALES-PERSON. 

Throughout this part of the Sum- 
mary, a single group of stores having 
sales between $40,000 and $80,000, 
classified by the amounts sold per 



TABLE H 





Amounts of Classified- Selling Expense 


Amoimt of 


I 


II 


III 


Salee per 

Pull-tlme 

fiBles-person 

(In OOO's) 


Per $100 of Total Ret Soles 


Per $100 of Total Het Sales 
per Stock Turnover 


Par $100 of Total Hat Sales per 

$1,000 of Sales per 

Pull-tlme Sales-person 


Total 
Selling 
Expense 


Bagea ft 
Salarlea 


Advertising 


Total 
Selling 

Expense 


Wages k 
Salaries 


Advertising 


Total 
Selling 
Expense 


Wages k 
Salaries 


Advertising 


Avernga 


$9.20 


$6.45 


$1.67 


$4.17 


$3.00 


$0.76 


$0.69 


$0.48 


$0.12 


Dndar Jl2 
il2 to tl6 
$16 to $24 
$24 to $32 
$32 t OTor 


10.82 
9.45 
7.62 
7.15 
4.05 


7.85 
6.51 
5.U 
5.25 
2.44 


1.92 

1.71 
1.42 
1.51 
0.61 


6.03 
5.07 
3.66 
3.42 
2.66 


4.43 
5.70 
2.61 
2.61 
1.56 


0.95 

0.98 
0.62 
0.60 
0.62 


1.08 
0.68 
0.42 
0.26 
0.09 


0.79 
0.47 
0.28 
0.19 
0.06 


0.19 
0.12 
0.08 
0.06 
0.02 


Table Muaber 

Voar 

Kraiber of 
Btore-ycara 


49 
3 yrs. 

163 


162 

3 jrs. 

163 


255 

3 yra. 

163 


46 

1919 

103 


158 
1919 

103 


252 

1919 

103 


49 

3 yra. 

163 


162 
3 yra. 

163 


255 

3 yrs. 

163 



sified by the amounts of inventories 
per $100 total net sales. As the inven- 
tories in relation to sales increase, 
both wages and salaries and advertis- 
ing, as proportionate parts of selling 
expense, when reduced to a stock 
turnover basis, increase. This condi- 
tion holds for the stores in each of 
the other size-groups, as well as for 
all stores, when classified according 
to inventory in relation to sales, but 
irrespective of size. Data are avail- 
able in this form for 1919 only. 



full-time sales-person, is used. The 
different parts of selling expense and 
the total are expressed in simple and 
composite units, the purpose being to 
reduce the varying conditions in 
these stores to a unit basis, 

A. — Amounts of Selling Expenses per 
$100 of Total Net Sales, for 
Stores Classified hy Amounts 
Sold per Full-time Sales-person. 

For a group of stores for the com- 
bined years 1914, 1918, and 1919, 



20 



with annual sales of $40,000 to $80,- 
000, as shown in Table H, Section I, 
the amounts of selling expense, of 
wages and salaries, and of advertising 
expenditures per $100 total net sales 
decrease as the amounts sold per full- 
time sales-person increase. Moreover, 
this condition holds for the stores in 
each of the different size-groups. 
When the stores are classified by loca- 
tion the amounts of total selling ex- 
pense and of wages and salaries de- 
crease as the amounts sold per full- 
time sales-person increase. The direc- 
tion of change for advertising is un- 
certain. 

B. — Amotmts of Selling Expenses per 
$100 Total Net Sales per Stock 
Turnover, for Stores Classified 
hy Amounts Sold Per Full-time 
Sales-person. 

Table H, Section II, shows for a 
group of stores for 1919, having sales 
of $40,000 to $80,000, the amounts of 
selling expense, of wages and salaries, 
and of advertising per $100 of total 
net sales per stock turnover, for stores 
classified by the amounts sold per 
full-time sales-person. As the amounts 
sold per full-time sales-person in- 
crease, the total selling expense and 
its components, wages and salaries 
and advertising, expressed in this 
unit, decrease. Moreover, this con- 
dition holds for the stores in each of 
the other size-groups, treated in the 
text, as well as for the stores classified 
without respect to size, but accord- 
ing to the sales per sales-person. 
When the stores are classified by loca- 
tion, the amounts of selling expense 



and of wages and salaries decrease. 
The amounts of advertising are un- 
certain as to direction of change. 
How nearly these conditions hold 
when the stores are classified more 
elaborately will be seen by consulting 
the part« of the text having to do 
with these topics. 

C. — Amounts of Selling Expenses per 
$100 Total Net Sales for Each 
$1,000 Sold per Full-time Sales- 
person, for Stores Classified hy 
Amounts Sold per Full-time 
Sales-person. 

In Table H, Section III, the 
amounts of total selling expense, of 
wages and salaries, and of advertising 
per $100 of total net sales for each 
$1,000 sold per full-time sales-person 
are shown for a group of stores with 
sales of $40,000 to $80,000, for the 
three years combined, when the stores 
are classified by the amounts sold per 
full-time sales-person. When the 
amounts are expressed in this unit, 
the total, as well as the component 
parts, wages and salaries and adver- 
tising, decreases as the sales per full- 
time sales-person increase. This con- 
dition also holds for the stores in each 
of the different size-groups and for 
the total stores, when classified in this 
form, but irrespective of size. More- 
over, in each of the different years, 
each element of selling expense, meas- 
ured in this unit, decreases as the 
sales per full-time sales-person in- 
crease. When the stores are classified 
by location into two city-groups, the 
amounts of each element of expense 
and the total also decrease as the sales 



21 



per full-time sales-person increase. 
The significance of such decreases 
with increased activities of salesmen 
is brought out more fully in the 
text. It is, however, of interest at 
this point to suggest the savings in 
the different elements of expense 
which accompany the increased activ- 
ities of salesmen. To increase the 
amounts of goods sold per salesman 
is one of the many ways in which 
operating expenses in relation to 
sales may be reduced. 

TABLE I 





Ajnouzita 


of Total Selling B^enae 


Anount of 


1 


11 


III 


Sales por 

Full-tiue 

Salea-psrson 

(in OOO'a) 


Per ilOO of 
Total Expense 


Per ClOO of 

Total Expense 

par Stock 

Turnover 


Per $100 of 
Total Expense 
per $1,000 of 
Sales per 
Pull-tine 
Sales-person 


ATSrage 


1»;.07 


$23.33 


$3.44 


tJnder $12 
$12 to $16 
$1« to $24 
$24 to $52 
$32 & over 


50. M 
45. J7 
41.61 
53.65 
55.72 


28.05 
27. »5 
,21.70 
19. S3 

10.62 


5.04 
5.29 
2.27 
1.45 
0.84 


Table number 

Years 

Number of 
Store-yeare 


59 
5 yrs. 

165 


57 
1919 

103 


59 
3 yrs. 

163 



D. — Amounts of Selling Expense per 

$100 Total Expense, for Stores 

Classified hy Ammmts Sold per 

Full-time Sales-person. 

Table I, Section I, shows the 

amounts of selling expense per $100 

total expense for a group of stores for 

the three years 1914, 1918, and 1919, 

combined, which had sales between 

$40,000 and $80,000 per year. The 

average amounts are shown for these 

stores when classified by the amounts 



sold per full-time sales-person. As 
such amounts increase, selling ex- 
penses, as proportionate parts of total 
expense, decrease. The same condi- 
tion holds for the stores in the other 
size-groups, treated in the text, and 
also for all the stores when they are 
classified in this form, but without 
respect to size. In each of the differ- 
ent years, 1914, 1918, and 1919, 
moreover, the amounts of selling ex- 
pense as proportionate parts of total 
expense decrease with increasing sales 
per full-time sales-person. 

E. — Amounts of Selling Expense per 
$100 Total Expense per Stock 
Turnover, for Stores Classified hy 
Amounts Sold per Full-time 
Sales-person. 
Section II of Table I shows the 
amounts of selling expense per $100 
of total operating expense reduced to 
a per turn basis. The stores included 
are those having sales of $40,000 to 
$80,000, and the basis of classification 
is the amount sold per full-time sales- 
person. As the amounts increase, 
selling expense expressed in this man- 
ner decreases. This condition holds 
for the stores in the other size-groups 
and also for the stores as a whole, 
classified in this form, but irrespective 
of size. 

F. — Ammints of Selling Expense per 
$100 Total Expense per $1,000 
Sold for Each Full-Time Sales- 
person, for Stores Classified by 
Amounts Sold per Full-time 
Sales-person. 
Table I, Section III, shows the 

amounts of selling expense for $100 



22 



total expense for each $1,000 sold per 
full-time sales-person. The details 
apply to a group of stores having 
sales of $40,000 to $80,000, when clas- 
sified according to the amounts sold 
per full-time sales-person. As these 
amounts increase, selling expenses ex- 
pressed in this form decrease. The 
table refers to a single size-group for 
the three years combined. In each 
of the other size-groups and for all 
the stores in the combined and in the 
individual years, however, the same 
condition holds. Moreover, from 
years to year, the amounts decreased. 
Certain modifications of these conclu- 
sions must be made for stores, when 
they are classified not only by size, 
but also by location. These are 
pointed out in the body of the text. 



G. — Amounts of Wages and Salaries 
and of Advertising per $100 
Selling Expense, for Stores Clas- 
sified by Amounts Sold per Full- 
time Sales-person. 

Table J, Section I, shows for the 
combined years 1914, 1918, and 1919, 
the amounts of w^ages and sala- 
ries and of advertising per $100 of 
selling expense for a group of stores 
with sales of $40,000 to $80,000. The 
basis of classifying the stores is the 
amount sold per full-time sales-per- 
son. As the sales per sales-person in- 
crease, the amounts of wages and sal- 
aries decrease and the amounts of 
advertising increase. For the stores 
in the other size-groups, the same con- 
dition obtains for wages and salaries, 



TABLE J 





Amounts of Classified Selling Expense 


Amount of 
Sales per 
Pull-tlme 
Sales-person 
(In OOO's) 


I 


II 


III 


Per $100 of Selling 
Expense 


Per $100 of Selling 

Expense per Stock 

Turnover 


Per $100 of Selling Expense 
per $1,000 of Sales per 
PuU-tima Sales-person 




Wages & 
Salaries 


Advertising 


Wages & 
Salaries 


Advertising 


Wages & 
Salaries 


Advertising 


Avorago 


$70.15 


$18.19 


$39.96 


$10.16 


$5.24 


$1.36 


Under $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 & over 


72.53 
68.95 
67,07 
73.4& 

60.63 


17.76 
18.07 
18.65 

21.08 
20.06 


49.01 
42.96 
39.59 
36.40 
31.26 


10.51 

11.43 

9.44 

8.45 

12.32 


7.25 

4.99 
3.66 
2.68 
1.43 


1.78 
1.31 
1.02 
0.77 
0.47 


Table HTunber 

Years 

Number of 
Store -years 


168 
3 yrs. 

163 


261 

3 yrs. 

163 


166 
1919 

103 


259 
19a9 

103 


168 
3 yrs. 

163 


261 
3 yra. 

165 



23 



while the direction of change is un- 
certain for the amounts of advertis- 
ing. When all the stores are classified 
in the form shown in the table, the 
amounts of wages and salaries de- 
crease, and the amounts of advertis- 
ing increase. These generalizations 
are based upon the averages for three 
years. In a general way, however, 
the condition shown in the table for 
the combined years also holds in the 
different years. When the stores are 
classified by location, it is impossible 
to generalize as to the direction of 
change in the amounts. The reader is 
advised to consult the text treatment 
of this matter both for the actual 
amounts and for the nature of the 
change with increasing amounts sold 
per full-time sales-person. 

H. — Amounts of Wages and Salaries 
and Advertising per $100 Selling 
Expense per Stock Turnover, for 
Stores Classified hy Amounts 
Sold per Full-time Sales-person. 

Table J, Section II, shows for the 
year 1919 the amounts of wages and 
salaries and of advertising per $100 
selling expense per stock turnover for 
a group of stores which had sales from 
$40,000 to $80,000. The averages 
apply to stores classified according to 
the sales per full-time sales-person. 
As such sales increase, wages and sal- 
aries expressed in this unit decrease, 
while the direction of change for ad- 
vertising expenditures is uncertain. 
For each of the other size-groups, as 
well as for all of the stores, the same 
conditions obtain. It is well, in this 
connection, to consult the detailed 



text treatment for the amounts as well 
as the nature of the change under dif- 
ferent conditions of store operation. 

/. — Amounts of Wages and Salaries 
and Advertising per $100 Selling 
Expense for Each $1,000 Sold 
per Full-time Sales-person, for 
Stores Classified hy the Amounts 
Sold per Full-time Sales-person. 
In Table J, Section III, the 
amounts of wages and salaries and 
advertising are shown per $100 of sell- 
ing expense for $1,000 sold per full- 
time sales-person. By expressing the 
amounts in this form, the different 
conditions of store operation are re- 
duced to a unit basis. For the groups 
of stores under consideration, as the 
amounts sold per full-time sales-per- 
son increase, the expenditures for 
wages and salaries and for advertis- 
ing decrease. Moreover, this condition 
holds for the stores in the other size- 
groups as well as for the stores as a 
whole, when classified by the amounts 
sold per person. The condition shown 
in the table for the combined years 
also holds in each of the individual 
years. From year to year, the 
amounts of both expenditures de- 
creased. For the direction of change 
in the amounts for the stores when 
classified by location, the reader is 
referred to the text treatment. 

5. — AMOUNTS OF SELLING EXPENSE AND 
ITS COMPONENTS, WAGES AND SAL- 
ARIES AND ADVERTISING, IN RELA- 
TION TO EXPENDITURES FOR RENT. 

The method of classifying the 
stores, the expenditures of which are 
here summarized is according to the 



24 



TABLE K 





AnountB of Claaalf led Selling Expense 


Amounts of Wages 
& Salaries 


Rent per 
100 Bq. Pt. 


1 


II 


III 


IV 


of 
Ploop Bpace 


Per ?100 of Total 
Net Sales 


Per $100 of Total Het 

Sales per Sales per 

Sq. Pt. 


Per $100 of 
Selling 
Expense 


Per $100 of 

Selling 

Expense 

per Sales 

per Sq. Pt. 




Totttl 
Selling 
Expense 


V.agee & 
Salaries 


Total 
Selling 
Expense 


Wages & 
Salaries 


Average 


$7.15 


$5.09 


$0.38 


$0.27 


$71.31 


$3.82 


Under $20 
$20 to $40 
$40 to $60 
$60 & over 


6.63 
6.33 
7.55 
8.44 


S.Ol 
4.41 
5.42 
6,00 


0.6S 
0.34 
0.35 
0.28 


0.50 
0.23 
0.25 
0.20 


75.57 
69.61 
71.73 
71.10 


7.50 
5.69 
3.30 

2.33 


Table H\:iiiber 

Year 

Humber of 
Store-yeaps 


77 
1919 

113 


184 
1919 
113 


77 
1919 

113 


184 
1919 
113 


185 

1919 
U3 


185 
1919 
113 



expenditures for rent per 100 square 
feet of floor space in 1919. In view of 
the fact that the different elements of 
expense are controlled in part by store 
location and by the amount of floor 
space utilized, it is thought worth- 
while to summarize briefly the part of 
the discussion which relates to this 
topic. While it is impossible ade- 
quately to deal with this subject in a 
summary, certain general conclusions 
of the treatment may be summarized 
for a single group of stores. For this 
purpose, 113 stores having sales of 
$40,000 to $80,000 in 1919 are used. 

A. — Amounts of Selling Expensed per 
$100 of Total Net Sales, for 
Stores Classified hy Amounts of 
Rent Paid per 100 Square Feet 
of Floor Space. 



In Table K, Section I, the amounts 
of total selling expense and of wages 
and salaries per $100 total net sales 
are shown for 113 stores having sales 
of $40,000 to $80,000 when the same 
are classified by the rental expendi- 
tures per 100 square feet of floor space. 
As the rents, expressed in this form, 
increase, total selling expense and 
wages and salaries in relation to sales 
increase. Moreover, this condition, so 
far as the total selling expense is con- 
cerned, also holds for the stores in 
the other size-groups. The direction 
of change for wages and salaries for 
the other groups is uncertain. For all 
the stores, irrespective of size, the 
amounts of wages and salaries tend to 
increase, while those of total selling 
expense are uncertain as to direction 
of change. When the stores are clas- 



25 



sified by location, and by rental pay- 
ments per 100 square feet of floor 
space, the amounts of total selling 
expense and of wages and salaries in- 
crease as rental payments per 100 
square feet of floor space increase. 

B. — Amounts of Selling Expenses per 
$100 Total Net Sales, for the 
Amount Sold per Square Foot of 
Floor Space for Stores Classified 
hy Amounts of Rent Paid per 100 
Square Feet of Floor Space. 

Table K, Section II, shows for 113 
stores in 1919 the amounts of selling 
expense and of wages and salaries per 
$100 total net sales for the amount 
sold per square foot of floor space. 
By expressing the expenditures in this 
form, the different elements of store 
operation named in the table are re- 
duced to a unit basis. The stores are 
classified according to the rentals per 
square foot of floor space. As the 
amounts expended for this purpose 
increase, both selling expense and 
wages and salaries decrease. Such a 
condition holds also for the stores in 
the other size-groups and for all the 
stores, irrespective of size, when clas- 
sified in this form. 

C. — Amounts of Wages and Salaries 
per $100 Selling Expense, for 
Stores Classified by Amounts of 
Rent Paid per 100 Square Feet 
of Floor Space. 

In Table K, Section III, the 
amounts of wages and salaries per 
$100 selling expense are shown for a 
group of stores, having sales of $40,- 
000 to $80,000 in 1919, when they are 



classified by the rental payments per 
100 square feet of floor space. As the 
rental payments increase, wages and 
salaries decrease. Moreover, this con- 
dition obtains for the stores in each 
of the other size-groups and for all 
stores classified in this form but with- 
out respect to size. 

D. — Amounts of Wages and Salaries 
per $100 Selling Expense for the 
Amount Sold per Square Foot of 
Floor Space, for Stores Classified 
hy Amounts of Rent Paid per 
100 Square Feet of Floor Space. 
In Section IV, of Table K, the 
amounts of wages and salaries per 
$100 selling expense for the amounts 
sold per square foot of floor space 
are shown for 1919 for 113 stores 
classified by rental payments per 100 
square feet of floor space. For pur- 
poses of summary, the stores having 
sales of $40,000 to $80,000 are used. 
One result of increasing rental pay- 
ments is a saving in the amount of 
floor space utilized. Accordingly, 
when wages and salaries are ex- 
pressed in relation to selling expense 
and the amount sold per square foot 
of floor space, they decrease as the 
rentals paid per 100 square feet of 
floor space increase. For other groups 
of stores, a similar condition obtains. 

6. — AMOUNTS OP SELLING EXPENSE AND 
ITS COMPONENTS, WAGES AND SAL- 
ARIES AND ADVERTISING, IN RELA- 
TION TO THE AMOUNTS OF FIXTURE 
INVESTMENTS PER $100 OF TOTAL 
NET SALES. 

One section of the text is devoted to 
an analysis of the amounts of selling 



26 



TABLE L 





AmountB of ClasElfled Selling 
Expense 


Amoxints of 
Total Selling 
Expense 


Amounts of Classified 
Selliz^ Expense 


Amotmt of 
PlxtTire Account 


1 


II 


III 


per $100 of 
Total Het Sales 


Per $100 of Total Net Salee 


Per $100 of 

Total 

Zxpense 


Per $100 of Selling 

ExRer.se 




Total Selling 
Expense 


Wages & 
Salaries 


Advertising 


Wages & 
Salaries 


Advertising 


Average 


|9.50 


$6.57 


$1.68 


$46.52 


$70,68 


$18.04 


Under $2 
|2 to $4 

$4 to $6 

te & over 


7.11 

9.56 
11.65 


5.27 
5.71 
6.39 
8.88 


0.95 
1.64 
1.89 
1.95 


45.03 
43. U 
47.30 
51.51 


74.16 

68.31 

66.81 
74.93 


13.30 
19.66 
19.79 
16.42 


Table Number 

Years 

Number of 
Store-years 


89 
S yrs. 

153 


193 
3 yrs. 

153 


273 
3 yrs. 

153 


97 

3 yrs. 

153 


198 

3 yrs. 

153 


281 
3 yrs. 

155 



expense in stores with different fix- 
ture investments in relation to sales. 
It is the purpose of the summary and 
of Table L to indicate in brief the 
amounts of the different elements of 
expenditures for stores classified by 
the relation of their fixture account 
to sales, and to indicate the tendency, 
if any, for these amounts to increase 
or to decrease under different condi- 
tions of store operation. 

A. — Amounts of Sellhig Expenses per 
$100 of Total Net Sales, for 
Stores Classified hy Amounts In- 
vested in Fixtures per $100 of 
Total Net Sales. 

Table L, Section I, shows for the 
three years combined the amounts of 
selling expense, wages and salaries, 
and advertising per $100 total net 
sales for a group of stores with sales 



of $40,000 to $80,000, classified by 
the amount invested in fixtures per 
$100 of total net sales. As the 
amounts invested in this form in- 
crease, total selling expense, wages 
and salaries, and advertising expen- 
ditures likewise increase. For the 
stores in each of the other size-groups 
and for all the stores, classified irre- 
spective of size, a similar condition 
obtains. Moreover, increases in each 
of the different elements of expense 
are encountered in each of the years 
for stores classified in this form. 

B. — Amounts of Selling Expense per 
$100 Total Expense, for Stores 
Classified by Amounts Invested 
in Fixtures per $100 Total Net 
Sales. 

Table L, Section II, shows the 
amounts of selling expense per $100 



27 



total operating expense for a group of 
stores during the three years 1914, 
1918, and 1919, combined, which had 
sales of $40,000 to $80,000, M-hen the 
stores are classified by the amounts 
invested in fixtures per $100 total net 
sales. As these amounts increase, 
selling expense as a proportionate 
part of total operating expense in- 
creases. For the stores in the other 
size-groups, and for the stores when 
classified in this form but irrespective 
of size, however, the direction of 
change in the amounts is uncertain. 
Moreover, in each of the individual 
years there seems to be no unmistak- 
able tendency for the amounts to in- 
crease or to decrease. 

C. — Amounts of Wages and Salaries 
and of Advertising per $100 
Selling Expense, for Stores Clas- 
sified by Amounts Invested in 
Fixtures per $100 Total Net 
Sales. 

In Section III of Table L, the 
amounts of wages and salaries and 
of advertising per $100 of selling ex- 
pense for a group of stores for the 
three years 1914, 1918, and 1919, 
combined, are shown when the stores 
are classified by the amount of fixture 
investment per $100 total net sales. 
As the amounts of fixture investment 
per $100 total net sales increase, there 
seems to be no certain tendency for 
wages and salaries and advertising 
either to increase or to decrease. It is 
to be noted that this condition is 
true also for the stores in each of the 
other size-groups. 



7. AMOUNTS OF SELLING EXPENSE AND 

ITS COMPONENTS, WAGES AND SAL- 
ARIES AND ADVERTISING, IN RELA- 
TION TO INVESTMENTS IN FIXTURES 
PER 100 SQUARE FEET OF FLOOR 
SPACE. 

Two methods of classifying the 
stores in relation to investments in 
fixtures are used. In Table L the 
amounts are stated in relation to sales 
while in Table M they are given in 
terms of floor space. 

A. — Amounts of Selling Expenses per 
$100 Total Net Sales, for Stores 
Classified by Amaunts Invested 
in Fixtures per 100 Square Feet 
of Floor Space. 
Table M, Section I, shows for 1919 
the amounts of total selling expense 
and wages and salaries per $100 total 
net sales for 113 stores, classified by 
the amounts invested in fixtures per 
100 square feet of floor space. As the 
amounts so invested increase, both 
selling expense and wages and salaries 
per $100 total net sales increase. 
This condition, moreover, holds for 
the stores in other size-groups and for 
all the stores, irrespective of size, 
when they are classified by the fix- 
ture investment in relation to floor 
space. 

B. — Amounts of Selling Expenses per 
$100 Total Net Sales for the 
Amount Sold per Square Foot of 
Floor Space, for Stores Classified 
by Amounts Invested in Fixtures 
per 100 Square Feet of Floor 
Space. 
Table M, Section II, shows the 

amounts of selling expense and of 



28 



TABLE M 





Amounts of Classified Selling Expense 


Amounts of Wages 
& Salaries 


Amount of 
Plxtxire Accoimt 


I 


II 


III 


IV 


per 100 sq. ft. 

of 

Floor Space 


Per $100 of Total 
Net Sales 


Per $100 of Total Net 

Sales per Sales per 

sq. ft. 


Per $100 of 
Selling 
Expense 


Per $100 of 
Selling 




Total 
Selling 
Expense 


Wages & 
Salaries 


Total 
Selling 
Expense 


77age8 & 
Salaries 


Expense 

per Sales 

per aq. ft. 


Average 


$7.13 


$5.09 


$0.38 


$0.27 


$71.31 


$3.82 


Under $40 
#40 to $80 
$80 to $120 

$120 & over 


6.76 
6.42 
7.80 
8.85 


4.71 
4.54 
5.49 
6.82 


0.45 
0.32 
0.33 
0.48 


0.32 
0.23 
0.23 
0.37 


69.64 
70.61 
70.31 
77.04 


4.66 
3.50 
2.07 
4.14 


Table Ntnnber 

Toar 

ITunbor of 
Store-yaars 


104 
1919 

113 


203 
1919 

113 


104 
1919 
113 


203 
1919 
113 


205 
1919 
113 


205 
1919 
113 



wages and salaries per $100 total net 
sales for the amount sold per square 
foot of floor space. The amounts re- 
fer to 113 stores with sales of $40,000 
to $80,000 in 1919, classified by the 
fixture investment per 100 square feet 
of floor space. As the investments 
measured in this way increase, there 
seems to be a general tendency for 
the amounts of selling expense to in- 
crease. Such a condition holds also 
for the stores in the other size-groups 
and for all the stores, irrespective of 
size, when classified in this manner. 
The direction of change in the 
amounts of wages and salaries for the 
group of stores included in the table 
is uncertain. For other groups and 
for the total, the general tendency is 
for the amounts to decrease as the 
fixture investments increase. Certain 



exceptions to this tendency, however, 
occur, and it is impossible to sum- 
marize them in a brief statement. 

C. — Ammints of Wages and Salaries 
per $1W of Selling Expense, for 
Stores Clarified by Amounts In- 
vested in Fixtures per 100 Square 
Feet of Floor Space. 

Table M, Section III, shows the 
amounts of wages and salaries per 
$100 of selling expense in 1919 for 
113 stores with sales of $-40,000 to 
$80,000, when the same are classified 
by the amount of fixture investments 
per 100 square feet of floor space. As 
the investments measured in this 
manner increase, wages and salaries 
per $100 selling expense also increase. 
That is, under the conditions named, 
wages and salaries constitute an in- 



29 



ereasingly larger proportion of the 
total selling expense. How nearly 
this condition obtains for stores in 
the other size-groups and for the total, 
irrespective of size, may be seen by 
consulting the text treatment and the 
tables concerned. 

D. — Amounts of Wages and Salaries 
per $100 Selling Expense for the 
Amount Sold per Square Foot of 
Floor Space, for Stores Classified 
ty Amounts Invested in Fixtures 
per 100 Square Feet of Floor 
Space. 

Table M, Section IV, shows the 
amounts of wages and salaries per 
$100 of selling expense reduced to a 
unit basis for the amount sold per 
square foot of floor space. The stores 
are those having sales of $40,000 to 
$80,000. They are classified accord- 
ing to their fixture investments in re- 
lation to floor space. As these invest- 
ments increase, wages and salaries, 
measured in this form, decrease, if 
the stores having investments of $120 
and over per 100 square feet of floor 
space are excepted. For the stores in 
the other size-groups, the amounts of 
wages and salaries under the condi- 
tions established in the table also tend 
to decrease. 

8. — AMOUNTS OP SELLING EXPENSE 
AND ITS COMPONENTS, WAGES AND 
SALARIES AND ADVERTISING, IN RE- 
LATION TO EXPENDITURES FOR AD- 
VERTISING PER $100 TOTAL NET 
SALES. 

In Table N the amounts of expenses, 
expressed in terms of sales, of total 



expense, and of selling expense, are 
shown in simple and complex units 
for stores with sales of $40,000 to 
$80,000, and with different expendi- 
tures for advertising in relation to 
sales. The purpose of the text treat- 
ment of this topic is to determine, if 
possible, the effect which different 
amounts of advertising have upon 
selling expense. It is impossible 
briefly to summarize all the conclu- 
sions in the text or to duplicate all 
the different ratios. Reference should 
be made to the text treatment under 
various classifications of stores. 

A. — Am&unts of Selling Expenses per 
$100 Total Net Sales, f&r Stores 
Classified hy Amounts of Adver- 
tising Expenditure per $100 
Total Net Sales. 

Table N, Section I, shows for 1919 
the amounts of selling expense and of 
wages and salaries per $100 of total 
net sales for 106 stores, classified by 
the amounts of advertising in relation 
to sales. As the amounts increase, 
selling expense and wages and sal- 
aries also increase. For purposes of 
summary, a group of stores with sales 
of $40,000 to $80,000 has been 
selected. To have ignored store size 
in this connection, in view of the fact 
that the amounts of advertising per 
$100 total net sales increase with store 
size, would have made such a compar- 
ison meaningless. Similar increases 
hold for the stores in each of the 
other size-groups. When the stores 
are classified by location, it is difficult 
to generalize as to the direction of 
change or briefly to indicate the 



30 



TABLE N 





Amounts of Classified Belling Expanse 


Amoimts of Total, 
Selling Expenoo 


Amounts of Wages 
8: Salaries 


Amount of 
Advertising 


I 


II 


■ III 


IV 


V 


VI 


per $100 of 

Total 

Hat Sales 


for $100 of Total 
Nat Salaa 


Per $100 of Total Vet 

Sales per Stock 

Turnover 


Par 5100 of 

Total 

pxpenea 


Per SlOO of 

Total 

Expenae 

per Stock 

Turnover 


Per $100 of 
Selling 
Expenoo 


Per 5lOO of 
Selling 




Total 
Selling 
Expense 


nages & 
Salaries 


Total 
Selling 
Expenaa 


Wagas & 
Salaries 


Ejcpenso 
por Stocl: 
T'lmovcr 


Average 


$7.45 


$5.36 


?4.14 


$2.93 


$41.79 


$23.32 


$71.92 


$39,95 


Qader |l 
♦l to $2 
$2 to ii 

♦3 i over 


S.77 
7.54 
9.32 
13.23 


4.53 
6.25 
6.14 
8.57 


3.21 
4.32 
5.18 

7.73 


2.S4 

3.09 
3.41 
S.04 


37.37 

40.49 
45.15 
54.13 


21.04 

23.82 
25.09 
31.34 


79.37 
71.64 
65.92 
64.73 


44.09 
42.14 
36.62 
50.08 


Table Humber 

Year 

number of 
8tore-7oars 


107 
X919 

106 


206 
1919 

105 


109 
1319 

106 


206 

1919 

106 


115 

1019 

105 


115 
1919 

105 


207 
1919 

105 


207 
1919 

106 



actual expenditures. The reader is 
advised to consult the text for a more 
elaborate treatment of the subject 
and the conclusions to which it has 
led. 

B. — Amounts of Selling Expenses per 
$100 Total Net Sales per Stock 
Turnover, for Stores Classified 
hy Amounts of Advertising Ex- 
penditure per $100 Total Net 
Sales. 

In Section II of Table N the 
amounts of selling expense and of 
wages and salaries per stock turnover 
are shown for 106 stores in 1919, 
having sales of $40,000 to $80,000, 
when the same are classified by the 
amounts expended for advertising per 
$100 total net sales. As these amounts 
increase, the total selling expense and 
the wages and salaries also increase. 
Similar increases characterize the 
stores in the other size-groups. The 



expenditures are reduced to a unit 
turnover basis, thus making more 
directly comparable the operating 
conditions of the different stores. 

C. — Amomits of Selling Expense per 
$100 Total Expense, for Stores 
Classified hy Amounts of Adver- 
tising Expenditure per $100 
Total Net Sales. 

In Section III of Table N the 
amounts of selling expense per $100 
total operating expense are shown for 
106 stores in 1919, with sales of $40,- 
000 to $80,000, classified by the 
amounts of advertising per $100 total 
net sales. As these amounts increase, 
selling expense becomes a proportion- 
ately larger percentage of total oper- 
ating expense. For other groups of 
stores, when classified by size, and for 
the total stores, note that the direc- 
tion of change in these amounts is 
uncertain. 



31 



D. — Amounts of Selling Expense per 
$100 Total Expense per Stock 
Turnover, for Stares Classified 
by Amounts of Advertising Ex- 
penditure per $100 of Total Net 
Sales. 

In Table N, Section IV, the amounts 
of selling expense per $100 total 
operating expense, when reduced to 
a stock turnover basis are shown for 
106 stores in 1919, with sales of $40,- 
000 to $80,000, when the same are 
classified by the amount of advertis- 
ing per $100 total net sales. As the 
amounts spent for this purpose in- 
crease, the expenditures for selling 
also increase. For the stores in the 
other size-groups, the direction of 
change is uncertain in some respects. 
The nature of the differences may be 
seen by consulting the tables in the 
text proper. For the amounts for 
stores classified by location, the reader 
is also advised to consult the text. 

E. — Amou7its of Wages and Salaries 
per $100 Selling Expense, for 
Stores Classified by Am,ounts of 
Advertising Expenditure per 
$100 Total Net Sales. 

In Section V of Table N, the 
amounts of wages and salaries per 
$100 selling expense are shown for 
106 stores having sales of $40,000 to 
$80,000 in 1919, when they are clas- 
sified by the amounts expended for 
advertising per $100 total net sales. 
As the amounts expended for this 
purpose increase, wages and salaries 
become proportionately smaller parts 
of selling expense. This condition, 



moreover, holds for the stores in each 
of the different size-groups and also 
for the stores as a whole, irrespective 
of size, classified according to adver- 
tising expenditures per $100 total net 
sales. 

F. — Amounts of Wa{ies and Salaries 
per $100 Selling Expense per 
Stock Turnover, for Stores Clas- 
sified by Amounts of Advertising 
Expenditure per $100 Total Net 
Sales. 

Table N, Section VI, shows the 
amounts of wages and salaries per 
$100 selling expense reduced to a per- 
stock turnover basis. The averages 
refer to 106 stores in 1919, having 
sales of $40,000 to $80,000 and clas- 
sified by the expenditures for adver- 
tising in relation to sales. As the 
amounts spent for this purpose in- 
crease, wages and salaries, measured 
in this unit, decrease. This condition 
holds for the stores in each of the 
other size-groups and for all of the 
stores classified in this manner but 
irrespective of size. 

9. — AMOUNTS OP SELLING EXPENSE AND 
ITS COMPONENTS, W^AGES AND SAL- 
ARIES AND ADVERTISING, FOR STORES 
CLASSIFIED BY EXPENDITURES FOR 
ADVERTISING, BY METHODS OF PAY- 
ING SALESMEN, AND BY RELATIVE 
RATES OF PROFIT PER $100 TOTAL 
NET SALES. 

In the body of the text special at- 
tention is given to the effect which 
expenditures for advertising per $100 
total net sales in 1914 and 1918 had 
upon sales and selling expense in sub- 



32 



sequent years. The details resulting 
from this analysis are contained in 
Tables 112 to 114, inclusive. While 
it is impossible to summarize them 
briefly, it is concluded that the expen- 
ditures for advertising offer a means 
by which selling expenses may be re- 
duced. Obviously, there are limita- 
tions beyond which this is not true, 
and it is not claimed that the analysis 
shows conclusively a causal connec- 
tion between the two factors. It is 
interesting to find, however, that, 
generally speaking, the larger the ex- 
penditures for advertising in relation 
to sales, the greater is the reduction 
in expenses in relation to sales. 

In Tables 67 to 74 and 176 to 183, 
inclusive, of the text, stores are clas- 
sified according to the method by 
which salesmen are compensated. 
The purpose of these tables is to de- 
termine the relationship, if any, be- 
tween the amounts of selling expense 
and the methods by which salesmen 
are compensated. Generally speak- 
ing, two conclusions result from this 
analysis : First, when all the evidence 
is considered, stores which pay their 
salesmen a bonus show higher total 
selling expense and wages and sal- 
aries than do those which pay no 
bonus. Second, stores in which 
salesmen are paid on a salary and 



commission basis have, on the whole, 
lower total selling expense and wages 
and salaries than do those which use 
straight salaries alone. The reader 
is advised to consult the tables and 
the discussion relating to them for a 
fuller statement of the evidence to 
the above effect. 

In the final section of the text, 
stores are classified according to the 
relative rates of profit per $100 total 
net sales which they had in 1919. For 
the stores classified in this form, the 
amounts of selling expense, of total 
operating expense, of gross margin, 
and of cost of merchandise sold have 
been determined. Generally speak- 
ing, the conclusion which is reached is 
as follows: The greater the relative 
rate of profit, the smaller the cost of 
merchandise sold, the total operating 
expense and the selling expense, and 
the larger the gross margin. 

In the introductory paragraph a 
plea is made for the reader not to 
content himself with a hasty perusal 
of the Summary. Care has been taken 
throughout the entire analysis faith- 
fully to present the facts as shown by 
store records and the Bureau is 
anxious that the case, as presented 
in full, should be understood by those 
who are interested in the results. 



33 



III. SELLING EXPENSE AND EXPENSE RATIOS IN CLOTHING 

STORES 



The questionnaire used by the 
Bureau of Business Research in co- 
operation with the National Associa- 
tion of Retail Clothiers in the study 
of Costs, Merchandising Practices, 
Advertising and Sales in the Retail 
Distribution of Clothing* provided 
for expenses to be reported under 
four headings: rent, wages and sal- 
aries, advertising, and general ex- 
pense. These different elements of 
expense have been fully analyzed in 
the Bureau 's study referred to above. 
It is unnecessary here to describe 
either the method employed or the 
results obtained. 

Partly as a necessary step in the 
analysis of expenditures under the 
above headings and partly as an edit- 
ing process preliminary to analysis, 
the expenses reported were dis- 
tributed according to a classification 
in which selling expense plays an im- 
portant part. It is with the analysis 
of expenditures classified in this form 
that this study deals. 

"Selling expense," as used herein, 
includes the wages and salaries of 
salesmen and such part — as nearly 
as could be determined — of the sal- 
aries of proprietors who gave part 
of their time to selling, as should 
properly be so charged. It also in- 
cludes expenditures for bushelling, 
for wrappings and containers, for de- 
livery expense, and all expenditures 
for advertising, including the salaries 

* Prentice-Hall, Inc., New York City. 



of employees such as window trim- 
mers and advertising men. 

Such portions of selling expense as 
are separately discussed below are 
fully defined. For present purposes, 
the above definition will suffice to in- 
dicate what is meant by "selling ex- 
pense." 

1. — SELLING EXPENSE FOR CLOTHING 
STORES CLASSIFIED BY YEARS, BY 
SIZE, AND BY LOCATION. 

For each of the years 1919, 1918, 
and 1914, the records of 154 stores 
are available for study, while for 1919 
alone, use is made of the records of 
303 stores. The experience of this 
larger group is treated separately, in- 
asmuch as it is desirable in the 
analysis to have as complete a 
sampling of stores as possible. 

The method of presenting the data 
is similar to that followed in the 
Bureau's study of Costs, Merchandis- 
ing Practices, Advertising and Sales 
in the Retail Distribution of Clothing, 
expense items being expressed in 
units of sales, total expense, or other- 
wise as the case may be. 

A. — Yearly Amounts of Selling Ex- 
pense per $100 of Total Net Sales 
and per $100 of Total Expense, 
1919, 1918, and 1914. 

The average amounts of selling ex- 
pense in terms of sales for the 154 
stores under consideration for the 
years 1919, 1918, and 1914 are set 



34 



TABLE 1 



TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OP SELLING EXPENSE PER $100 
OF TOTAL NET SALES, FOR 154 IDENTICAL STORES, 1919, 1918, AND 1914 





Nujnber 

of 
Store- 
years 


Total 
Net Sales 


Total 
Selling 
Expense 


Selling Expense per OlOO of Total 


Nat Sales 


Years 


Amount 


Per Cent. 




Graphic 
3 20 40 60 80 100 120 


Actual 


Total 


462 


$44,835,499 


$4,851,112 


$10.82 






(Average ) 


; 




1919 
1918 


154 
154 
154 


20,892,764 

14,714,515 

9,228,220 


2,182,027 
1,609,671 
1,059,414 


10.44 
10.94 
11.48 






96,5 
101.1 
106.1 


1914 


















Average tlO.82 





out in Table 1. In 1914, $11.48 out 
of every $100 of total net sales was 
expended for selling purposes. In 

1918, the amount was $10.94, and in 

1919, $10.44. That is, between 1914 
and 1918, and 1914 and 1919, selling 
expense in terms of total net sales de- 
creased, the percentage of change be- 
tween 1914 and 1918 being 4.7, and 
between 1914 and 1919, 9.1. 

These amounts and percentages of 
change characterize identical stores. 
During the period in question, both 



the sales and selling expense of the 
stores increased. Sales, however, in- 
creased more rapidly than selling 
expense with the result that selling 
expense in terms of sales decreased. 
These relationships are shown in 
Table 2. 

It is also of interest for the 154 
stores to compare the relations of the 
selling expense to the total expense 
of doing business. In 1914 the pro- 
portion of total expense attributable 
to selling, as defined above, was $48.86. 



TABLE 2 

AVERAGE AMOUNT AND PER CENT. INCREASE OR DECREASE OF TOTAL NET SALES AND 

SELLING EXPENSE PER STORE, AND AVERAGE AMOUNT OF SELLING 

EXPENSE PER $100 OF TOTAL NET SALES, FOR 154 IDENTICAL 

STORES, 1919, 1918, AND 1914 





AvQrago Amotint of Ttatal Net Salea 
per Store 


Average Ano-mt of Sallina 
Expense per Store 


Average Arwunt or Selling bxpaa«a 
per $100 of Total Net Salea 


Yoora 


Anount 


Per Cent. Increase over 1914 


AsKunt 


Per Cent. Increase over 1914 


Anount 


Per Cent. Decrease from 1914 




1 Oraphlo 
A«taa 1 

20 40 60 BO 100 120 14 


1 Crapblo 
Aetnftl 1 

20 40 60 80 100 12C 


1 Graptilc 
Actual 

20 40 60 90 100 


1919 
19 IS 
19X4 


1155,667 
95,548 
59,924 


126.4 
59.5 




114,169 
10,452 
6.879 


lOS.O 
51.9 




$10.44 
10.94 
11.48 


9.1 
4.7 






-^ 


: 



35 



By 1918 this amount had increased 
to $49.63, and by 1919 to $51.06. 
Stated in another way, essentially 
$50 out of every $100 of total expense 
is attributable to selling. 

Table 3 shows that the average 
total expense of these stores increased 
between 1914 and 1918 by 49.6 per 
cent, and between 1914 and 1919 by 
97.1 per cent. At the same time, their 
selling expense increased between 
1914 and 1918 by 51.9 per cent, and 
between 1914 and 1919 by 106.0 per 
cent. When selling expense is ex- 



the stores are classified by size. Table 
4 shows the relation between selling 
expense and total net sales, and Table 
5, the relation between selling ex- 
pense and total expense for the 154 
stores classified by size. The amounts 
of selling expense per $100 of total 
net sales decreased between 1914 and 
1918, and between 1918 and 1919 for 
each group of stores; the decrease 
being most noticeable for stores with 
sales less than $40,000 and for those 
with sales between $40,000 and 
$80,000. 



TABLE 3 

AVERAGE AMOUNT AND PER CENT. INCREASE OR DECREASE OF TOTAL EXPENSE AND 

OF SELLING EXPENSE PER STORE, AND AMOUNT OF SELLING EXPENSE 

PER $100 OF TOTAL EXPENSE, FOR 154 IDENTICAL STORES, 

1919, 1918, AND 1914 



20 40 60 80 100 



^ 



gg 49 6(1 ep IPC ISO 



gp 40 60 60 IPp 



1S19 
191B 
1914 



427,749 
21,059 
14,060 



tl4,16e 
10,452 
6,679 



106.0 
51.9 



tS1.06 
49.63 



pressed as a proportion of total ex- 
pense, it is found that there was an 
increase of 1.6 per cent, between 1914 
and 1918 and of 4.5 per cent, between 
1914 and 1919. 

B. — Yearly Amounts^ of Selling Ex- 
pense per $100 of Total Net 
Sales and Per $100 of Total Ex- 
pense, for Stores in 1919, 1918, 
and 1914, Classified by Size. 

What is true for the 154 stores 
treated as a total is also true when 



The direction of change from year 
to year in the relation of selling ex- 
pense to total expense, when the stores 
are classified by size, is not so evident. 
For the stores with annual sales less 
than $80,000, the amounts decreased 
between 1914 and 1918, and 1918 and 
1919, while for those with sales of 
$80,000 and over there is an uncer- 
tainty as to direction, the average 
amount in 1918 being lower than the 
amount in either 1914 or 1919, for the 
group with sales of $80,000 to $180,- 
000, and higher than the amounts for 



36 



TABLE 4 

TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 

OF TOTAL NET SALES, FOR 154 IDENTICAL STORES CLASSIFIED 

BY SIZE, 1919, 1918, AND 1914 



Selling Expenea per flOO of Total Net Sales 




Average $10.82 



these years for the stores with sales 
of $180,000 and over. 

C. — Yearly Am&unts of Selling Ex- 
pense per $100 of Total Net Sales 
and per $100 of Total Expense, 
for Stores in 1919, 1918, and 



1914, Classified by Size of City in 
Which Located* 

It is of interest to compare the 
relations of selling expense to sales 
and to total expense, from year to 

* Population figures are for 1920. 



37 

44392 



TABLE 5 

TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OP 

TOTi\L EXPENSE, FOR 154 IDENTICAL STORES CLASSIFIED 

BY SIZE, 1919, 1918, AND 1914 





Years 


Number 

of 
Store- 
years 


Total 
Expense 


Total 
Selling 
Expense 


Selling Expense per ^100 of Total Expense 


Total 
Het Sales 
(m OOO's) 


Ap.oijmt 

C 


Per Cent. 


Graphic Actual 
) 20 40 60 80 100 120 




Total 
(Avercigc) 


452 


59,684,915 


$4,351,112 


550.09 


^^^ ; 


100.0 






Total 


1919 
1918 
1914 


154 
154 
154 


4,273,325 
3,243,123 
2,168,367 


2,182,027 
1,609,671 
1,059,414 


51.06 
49.63 
48.96 


101.9 
99.1 
97.5 


(Average) 














Total 
(Average) 


129 


741,391 


304,954 


41.13 


82.1 






Dndar $40 


1919 
1918 
1914 


14 
42 
73 


76,237 
248,315 
416,829 


29,018 
101,621 
174,315 


33.06 
40.92 
41.82 


76.0 
81.7 
83.5 














Total 
(Average) 


172 


1,981,375 


913,357 


46.10 


92.0 




; 




1919 
1918 
1914 


57 
63 
52 


566,182 
755,488 
659,705 


246,207 
345,293 
321,857 


43.49 
45.70 
48.79 


86.8 

91.2 
97.4 




1 












Total 
(Average) 


117 


2,897,244 


1,491,301 


51.49 


10?. 8 






teo to $180 


1919 
1913 
1914 


53 
35 

24 


1,361,844 
905,972 
629,528 


719,436 
445,138 
327,227 


52.83 
49.14 
51.98 


105.5 

98.1 

103.8 










i 




Total 
(Average ) 


44 


4,064,815 


2,141,000 


52. G7 


105.2 






tlBO & over 


1919 
1919 
1914 


25 

14 

5 


2,269,062 
1,333,446 

462,305 


l,187,36e 
717,619 

236,015 


52.33 
53.82 
51.05 


10 A. 5 
107.4 






^^^^^ 









Average $50.09 



year, for all the stores, when they are 
classified by the size of the city in 
which they are located. Such com- 
parisons are shown in Tables 6 to 9, 
inclusive. 

One hundred and fifteen of the 154 



stores are located in cities with popu- 
lation of less than 40,000. Between 
1914 and 1918 the sales of these stores 
increased by 49.4 per cent, and be- 
tween 1914 and 1919, by 109.4 per 
cent. Corresponding to these in- 



38 



creases in sales, were increases of 
40.8 per cent, and 85.4 per cent., re- 
spectively, in selling expense. When 
the amounts of selling expense are 
expressed in terms of total net sales, 
they are found to have decreased be- 
tween 1914 and 1918 by 5.8 per cent. 
and between 1914 and 1919 by 11.5 
per cent. 

The percentages of increase in sales 
were noticeably larger between 1914 
and 1918, and between 1918 and 1919 
for the 39 stores located in cities with 
population of 40,000 and over than 
for those in the small cities. The per- 
centages of increase in selling ex- 
pense, however, were also larger, the 
result being that the percentages of 
decrease in selling expense per $100 
of total net sales were smaller for the 
stores in the large cities than for 
those in the small cities for both 1918 
and 1919 when compared with 1914. 



Relatively, therefore, the advantage 
in the increase in sales accruing to 
the stores in the large, over those 
located in the small cities, is more 
than compensated for by the increase 
in selling expense. 

"When selling expense is expressed 
in relation to total expense for these 
same stores, as in Table 7, a somewhat 
different story is told. For the 115 
stores in the small cities the percent- 
age of increase in the amount of sell- 
ing expense, as between 1914 and 
1918, was almost precisely the same 
as that in total expense, while be- 
tween 1914 and 1919 it exceeded that 
in total operating expense. When 
the amounts of selling expense are 
expressed in relation to total expense, 
the result is that between 1914 and 
1918 the amount decreased by 0.1 per 
cent, and between 1914 and 1919 in- 
creased by 3.6 per cent. 



TABLE 6 

RELATION OF SELLING EXPENSE TO TOTAL NET SALES, FOR 154 IDENTICAL, STORES 
CLASSIFIED BY SIZE OF CITY, 1919, 1918, AND 1914 



size 

of 

City 

iin OOO'e) 


Years 


Number 

of 
Stores 


Het Sales 




Selling Expense 




Total 


Average 
per 


Ajnount 
Store 


Total 


Average 
per 


Amoxint 
Store 


Per $100 of Total 
Net Sales 


Amount 


Per Cent. 
Increase 
over 1914 


Amount 


Per Cent. 
Increase 
over 1914 


Amount 


Per Cent. 
Decrease 
from 1914 




1919 


154 


120,992,764 


tl35,667 


126.4 


#2,182,027 


114,169 


106.0 


»10.44 


9.1 


Total 
(Average ) 


191B 


154 


14,714,515 


95,549 


59.5 


1,609,671 


10,452 


51.9 


10.94 


4.7 




1914 


154 


9,228,220 


59,924 




1,059,414 


6,879 




11.48 






1919 


115 


10.005,585 


87,005 


109.4 


696,865 


7,799 


85.4 


8.96 


11.5 


'Onder 


1918 


115 


7,156,283 


62,055 


49.4 


680,787 


5,920 


40.8 


9.54 


5.8 




1914 


U5 


4,777,138 


41,540 




483,712 


4,206 




10.13 






1919 


59 


10,887,179 


279,158 


144.6 


1,285,164 


32,953 


123.2 


U.80 


8.7 


40 and 
ever 


191B 
1914 


S9 
S9 


7,578,232 
4,451,062 


194,314 
114.130 


70.S 


928,884 
575,702 


23,818 
14,762 


61.3 


12.26 
12.93 


5.2 



39 



Similar, but larger, percentages of 
increase in total and in selling ex- 
penses were experienced for the 39 
stores located in the large cities. Be- 
tween 1914 and 1918, the total oper- 
ating expense increased 57.0 per cent, 
and the total selling expense, 61.3 per 
cent. Between 1914 and 1919 the 
same expenses increased, respectively, 
112.7 and 123.2 per cent. The result 



cities, when expressed in terms of 
sales, decreasing more, and when ex- 
pressed in terms of total expense, in- 
creasing less than the amounts for the 
stores in the large cities. 

The relations of the amounts of 
selling expense to total net sales and 
to total operating expense, respec- 
tively, for the 154 stores classified by 
the size of the city in which they are 



TABLE 7 

RELATION OF SELLING EXPENSE TO TOTAL EXPENSE, FOR 154 IDENTICAL STORES 
CLASSIFIED BY SIZE OF CITY, 1919, 1918, AND 1914 



of 

City 
(la OOO's) 






Total Expense 






Selling E:^p 


31130 




Years 


of 
StorcQ 


Amount 


Avorage Amcunt 
per Stora 


Total 


Average 
per 


Amount 
Store 


Per *100 of Total 
Expense 


Aco'ont 


Per Cont. 
over 1914 


Amount 


Per Cent. 
Increase 
over 1914 


Axoount 


Par Cent. 
Increase or 
Decreaaa 
from 1914 




1919 


154 


$4,273,325 


§27,749 


97.1 


?,2,lfl2,0?7 


fj.4,169 


106.0 


$51 .06 


•4.5 


Total 
(Aver.-co) 


1918 
1914 


154 
154 


3,243,123 
8,168,369 


21,059 
14,080 


49. C 


1,C03,C71 
1,059,414 


10, '.52 
5,879 


51.9 


49.63 
48.86 


*1.6 




1919 


115 


1,793,459 


15,595 


73.9 


896,863 


7,799 


85.4 


50.01 


♦3.6 


Pndar 


1918 


lis 


1,412,863 


12,286 


40.9 


660,787 


5,920 


4C.3 


43.18 


-0.1 




1914 


115 


1,002,412 


8,717 




483,712 


4,206 




48.25 






1919 


J9 


2,479,866 


63,506 


112.7 


1,285,164 


32,953 


123.2 


51.82 


.4.9 


40 and 


1918 


59 


1,830,260 


46,930 


57. 


928,884 


23,813 


61.3 


50.75 


♦2.8 




1914 


39 


1,155,955 


29,896 




575,702 


14,762 




49.38 





of these increases is that selling ex- 
pense, measured in terms of total 
operating expense, increased 2.8 per 
cent, between 1914 and 1918, and 4.9 
per cent, between 1914 and 1919. 

When Tables 6 and 7 are compared, 
it is of interest to observe for both 
groups of stores that the amounts of 
selling expense in terms of sales 
relatively decreased, and in terms of 
total expense relatively increased, the 
amounts for the stores in the small 



located, are graphically shown for 
each of the years in Tables 8 and 9. 
In Table 8 the amounts are expressed 
in terms of total net sales. While for 
the three years combined, the average 
amount of selling expense for each 
$100 of sales is $10.82 for the entire 
group of stores, the amount is $9.40 
for the stores in the small cities, and 
$12.17 for those in the large cities. 
That is, the amount for the stores in 
the small cities is 86.9 per cent., while 



40 



that for the stores located in the large 
cities is 112.5 per cent, of the average 
for the entire group. From 1914 to 
1919 the amounts for the stores in 
both city-groups decreased, the extent 
of the change being relatively larger 



increased from 1914 to 1918, and 1914 
to 1919. The changes, however, are 
small, the amounts for the stores dif- 
ferently located very closely approxi- 
mating the average for the entire 
group. 



TABLE 8 

TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 

OF TOTAL NET SALES, FOR 154 IDENTICAL STORES CLASSIFIED 

BY SIZE OF CITY, 1919, 1918, AND 1914 



Size 


Years 


Duobep 

of 
Store- 
years 


Total 
Net Sales 


Total 
Selling 
E.-'.pense 


Selling Expense per $100 of Total 
Nat Sales 


of 

City 

(In OOO's) 


Amormt 


Per Cent. 


Graphic 
D 20 40 60 80 100 120 


Actual 




Total 
(Average) 


463 


$44,835,499 


$4,351,112 


110.82 




100.0 






Total 


1919 
1918 
1914 


154 
154 
154 


20,892,764 

14,714,515 

9,228,220 


2,182,027 
1,609,671 
1,059,414 


10.44 
10.94 
11..48 


96.5 
101.1 
106.1 


(Average) 














Total 
(Average) 


345 


21,919.006 


2,061,362 


9.40 






: 




Under 


1919 
1913 
1914 


115 
115 
115 


10,005,595 
7,136,283 
4,777,138 


896,363 
680,737 
483,712 


8.96 
9.54 

10.13 


82.3 


40 


: 


38.2 




: 


93.6 




: 






Total 
(Average) 


117 


22,916,493 


2,789,750 


12.17 


112.5 




: 


40 and 


1919 
1913 
1914 


39 
39 
39 


10,387,179 
7,573,232 
4,451,082 


1,285,164 
928,884 
575,702 


11.80 
12.26 
12.93 


109.1 
113 3 


over 


! 















Average $10.82 



for the stores in cities with popula- 
tion under 40,000. It is to be noted 
that, absolutely, the differences are 
almost identical. 

When selling expense is expressed 
in terms of total operating expense, 
the amounts for stores in the two 
city-groups, with one slight exception, 



D. — Yearly Amounts of Selling Ex- 
pe7ise per $100 of Total Net 
Sales and per $100 of Total Ex- 
pense, far Stores Classified hy 
Size and by Size of City in 
Which Located* 1919, 1918, and 
1914. 
* Population figures are for 1920. 



41 



TABLE 9 

TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 

OF TOTAL EXPENSE, FOR 154 IDENTICAL STORES CLASSIFIED 

BY SIZE OF CITY, 1919, 1918, AND 1914 



Size 


Ye-ars 


Ilijuiber 

of 
Store- 
years 


Total 
Expense 


Total 
Selling 
Expense 


Selling Expense per flOO of 'Potal Expense 


of 

City 

(in 000' s) 


Amount 

( 


Per Cent. 


Graphic 1 ^^t,^^^ 
3 20 40 60 80 100 120 




Total 
(Average) 


462 


$9,684,815 


3.4,851,112 


$50.09 










Total 


1919 
1S18 
1914 


154 
154 
154 


4,275,525 
5,245,125 
2,168,567 


2,182,027 
1,609,671 
1,059,414 


51.06 
49.63 
48.66 




101.9 
99.1 
97.5 


(Average ) 






^^^^^1 




: 




Total 
(Average) 


545 


4,208,754 


2,061,362 


48.98 


: 


97.8 




] 




1919 
1918 
1914 


115 
115 
115 


1,793,459 
1,412,065 
1,002,412 


896,865 
680,787 
483,712 


50.01 
4S.18 
48.25 




99. 8 
96.2 
96.3 


40 






1 




1 




Total 
(Average) 


117 


5,476,081 


2,789,750 


50.94 


101.7 




: 


40 and 


1919 
1918 
1914 


59 
59 
59 


2,479,866 
1,850,260 
1,165,955 


1,285,164 
928,384 
575,702 


51.82 
50.75 
49.58 


103.5 

101.3 

CO. 6 


over 


■ 




: 




; 



Average $50.00 



Two groups of stores are available 
for the study of the relation of selling 
expense to sales for stores of different 
size. The first — 303 stores — covers 
the year 1919 alone; the second — 154 
stores — applies to each of the years 
1919, 1918, and 1914. In 1919, based 
upon the records of 303 stores, with 
total sales of $36,193,718 and selling 
expense of $3,595,401, the ratio of 
selling expense to sales is $9.93. In 
other words, it costs $9.93 in selling 
expense, as defined, to sell $100 worth 
of goods. This amount, however, 



varies noticeably for stores of differ- 
ent size. For the 45 stores with an- 
nual sales of less than $40,000 the 
amount is $6.46 and for the 43 stores 
with sales of $180,000 and over, it is 
$11.45. These amounts, respectively, 
apply to stores with the smallest and 
the largest annual sales. An inspec- 
tion of the total section of Table 10 
reveals the unmistakable tendency for 
the ratios of selling expense to total 
net sales to increase as the stores in- 
crease in size. This table, however, 
refers solely to 1919. When another 



42 



group of stores is considered for the 
same year, as in Table 12, a like con- 
dition is observed. The amount of 
selling expense per $100 of total net 
sales for this group as a total is some- 
what larger, but the direction of 



and size. The total sections of these 
tables show the amounts of selling 
expense per $100 of total net sales, 
first for the three years 1919, 1918, 
and 1914, combined, and second, for 
the respective years. For the com- 



TABLE 10 

TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 
OF TOTAL NET SALES, FOR STORES CLASSIFIED BY SIZE OF CITY AND STORE, 1919 



Size 

of 
City 

(m 000*3) 



Total 

(Average) 



Under 
40 



40 and 
over 



Classified 

Total 
Jlet Sales 
(In coo's) 



Total 
(Aver&cc) 



Under $40 
$40 to S80 
580 to 5180 

$180 & over 



Total 
(Avernge) 



Under $40 
340 to S80 
^0 to $180 

JlSO Jc over 



Total 
(Average) 



Under $40 
t40 to jeo 
$80 to $180 

$180 &. over 



Jlumbor 

of 
Stores 



45 
113 
102 

43 



44 
99 
70 
12 



Total 
Jlet Sales 



$36,193,718 



1,399,886 

6,500,336 

11,986,362 

16,307,134 



17, 978, 319 



1,372,066 
5,610,593 
8,138,365 
2,857,295 



18,215,399 



27,820 

889,743 

3,847,907 

13,449,839 



Total 
Selling 
Expense 



$^3, 595, 401 



90,453 

463,566 

1,174,364 

1,867,013 



1,490,026 



86,813 
386,503 
72^,670 
294*040 



2,105,375 



3,640 

77,065 

451,694 

1,572,978 



Selling Expense per $100 of 
Net Sales 



$9.93 



6.46 

7.13 

9.80 

11.45 



8.29 



6.33 
6.89 

e.ee 

10.29 



11.56 



13.08 

8.66 

11.74 

11.70 



Graphic 




100.0 



65.1 

71.8 

98.7 

115.3 



83.5 



63.7 

69.4 

89.4 

103.6 



116.4 



131.7 

87.2 

118.2 

117.8 



Average $9.93 



change in the amounts from store- 
group to store-group nevertheless fol- 
lows closely that observed for the 303 
stores. 

In Tables 11 to 14, inclusive, 154 
stores are classified by years, location, 



bined years, the average amount of 
selling expense is $10.82. For the 
smallest stores it is $8.49 and for the 
largest, $12.05, the amounts increas- 
ing as the stores increase in size. 
Such a condition is observed also for 



.43 



TABLE 11 

TOTAL NET S^VLES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 

OF TOTAL NET SAI.ES, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE 

OF CITY AND STORE, 1919, 1918, AND 1914, COMBINED 



Sizs 

of 

, City, , 


Classified 

Total 
Net Sales 
(In OOO'a) 


Number 

of 
Store- 
yeare 


Total 
Net Sales 


Total 
Selllnc 
Expense 


Soiling Expense per $100 of 
To' el Nat Sales 


Amount 

( 


Par Cent. 




Graphic 

Actual 
3 20 40 60 80 100 120 


! Total 


462 


$44,835,499 


$4,851,112 


$10.82 




100.0 




(Average) 




i^/t^^ «iin 


129 

172 

117 

44 


3,590,553 

9,775,007 

13,695,639 

17,774,300 


304,954 

913,357 

1,491,301 

2,141,000 


8.49 

9.34 

10.89 

12.05 


78.5 
86.3 
100.6 
111.4 


Total 
(Aver=.^c; • ^40 to $80 

^0 to $180 

$1S0 Je over 


i 










Total 
(AveraE?) 


345 


21,919,006 


2,061,362 


9.40 


86.9 




! 


Ucder 
40 


DivJer i40 
$40 to {^0 
£80 to JI8O 

$130 li. over 


121 

136 

77 

9 


3,317,333 
7,650,532 
8,832,022 
2,119,114 


276,723 
670,140 
892,563 
221,936 


3.34 

8.76 

10.11 

10.47 


77.1 

81.0 




I 




; 


96.8 




1 




Total 
(Average ) 


117 


22,916,493 


2,789,750 


12.17 


112.5 




; 






Under $40 
|4C to SSO 
#80 to $180 

$180 & over 


8 
34 

40 
35 


273,215 

2,124,475 

4,863,617 

15,655,186 


23,231 

243,217 

599,238 

1,919,064 


10.33 
11.45 
12.32 
12.26 


95.5 
105.8 


40 and 
over 


; 



















Average $10.82 



each of the years when treated sepa- 
rately. 

In 1919, the average amount was 
$10.44, in 1918, $10.94, and in 1914, 
$11.48. That is, from year to year, 
the amounts decreased as is shown 
graphically in Table 1. Moreover, 
the amounts decreased from year to 
year for each group of stores. 

Attention should be called to the 
fact that store identity is not main- 
tained throughout the various years 
in any of the sales-groups. The rate 



at which sales increase for the respec- 
tive stores varies so that from year to 
year each group does not necessarily 
contain the same stores nor the same 
number of stores. 

An analysis of the relation of sell- 
ing expense to total expense may also 
be made for the 154 stores, classified 
by size. This is done in Tables 15 to 
18, inclusive. It is thought to be suf- 
ficient to compare identical stores for 
this purpose. 

Based upon the three-year experi- 



44 



TABLE 12 

TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 

OF TOTAL NET SALES, FOR 154 STORES CLASSIFIED BY 

SIZE OF CITY AND STORE, 1919 



Size 
of 

City 


Classified 

Total 
Net Sales 
(In OOO'a) 


HumLer 

of 
Stores 


Total 
Net Sales 


Total 
Selling 
Expenee 


Selling Expense per *100 of Total Net Sales 


Anoijnt 


Fer Cent. 


(In 000*3) 


Graphic 

Actual 
3 20 40 60 80 100 120 140 




Total 
(Average ) 


154 


$20,892,754 


$2,182,027 


$10.44 




100.0 






Total 
(Average) 


Dnder ^40 
$40 to 580 
{80 to *180 

Siao J: over 


14 
57 
53 
25 


428,714 

3,222,458 

6,856,815 

10,374,767 


29,018 

245,207 

719,436 

1,187,356 


6.77 
7.64 
lO.ifl 
11.44 


64.3 
73.2 

100.4 
103.6 












Total 
(Average) 


115 


10,005,585 


895,853 


8.96 


85.8 






Under 
40 


Under $40 
^10 to S80 
§30 to $180 

Sl80 S: over 


14 
51 
44 
6 


428,714 
2,836,747 
5,255,410 
1,434,714 


29,018 
211,678 

509,410 
146,757 


6.77 
7.46 
9.69 
9.38 


64.3 
71. S 
92.8 
94.6 




; 




i 




Total 
(Average) 


39 


10,887,179 


1,235,164 


11.80 


113.0 




• 


40 and 
over 


Onder Uo 
^ to Jao 

$80 to $180 
$180 & over 


6 
14 
19 


385,721 
1,611,405 
8,890,053 


34,529 

210,026 

1,040,609 


8.95 
13.03 
11.71 


85.7 
124.8 
112.2 















Average $10.44 



enee of 154 identical stores, the aver- 
age amount of selling expense per 
$100 of total expense is $50.09. In 
1919 it was $51.06, in 1918, $49.63, 
and in 1914, $48.86. That is, the 
amounts of selling expense per $100 
of total expense increased between 
1914 and 1918, and 1918 and 1919. 
When the stores are considered with 
respect to size for the combined and 
for each of the years, the amounts in- 
crease as the stores increase in size. 
For the three years combined, the 



amount for the stores with annual 
sales under $40,000 is $41.13, while 
for those with annual sales of $180,- 
000 and over it is $52.67. Relatively, 
the amount for the small stores is 
82.1 per cent., and for the large stores, 
105.2 per cent, of the average for all 
the stores. Between these limits, the 
amounts increase as the stores in- 
crease in size. 

In 1919, the average amount of sell- 
ing expense per $100 of total expense 
was $51.06. For the stores having 



45 



TABLE 13 

TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OP SELLING EXPENSE PEE $100 

OF TOTAL NET S.VLES, FOR 154 STORES CLASSIFIED BY 

SIZE OF CITY AND STORE, 1918 



Eire 


Classified 

Total 
l!et Sales 
(In coo's) 


number 

of 
Stores 


Total 
Not Sales 


Total 
Selling 
Expense 


Selling Expense per $100 of Total 
net Sales 


of 

City 

(in CCO's) 


Aitoimt 


Fer Cent. 


Graphic 

Actual 
) 20 40 60 80 100 120 




Total 
(Average ) 


154 


*14,714,515 


$1,609,671 


$10.94 














Dnder $40 
$40 to §80 
iSO to $180 

Sl80 & over 


42 
63 
35 

14 


1,256,795 

3,662,794 
4,090,205 
5,704,723 


101,621 

354,203 
445,138 
717,619 


8.09 

9.43 

10.83 

12.58 




V^ 9 


Total 
(Average ) 


: 


86.2 
















, 






Total 
(Average ) 


115 


7,136,283 


680,787 


9.54 


i 


87.'' 








Ur.der 
40 


ttader 540 
J40 to $80 
Sec to JI8O 

SI8O & over 


41 
49 
22 

r 

3 


1,2:1,199 

2,776,272 

2,504,412 

634,400 


99,513 
244,788 
261,307 

75,179 


8.15 

8.82 
10.43 
11.85 




74.5 




; 


95.3 
108.3 












Total 
(Average) 


39 


7,578,232 


928,884 


12.26 












40 and 


Dnder 340 

$40 to 3eo 

$80 to $180 
$180 & over 


1 
14 
13 
11 


35,596 

886,522 

1,585,791 

5,070,323 


2,108 
100,505 
183,831 
642,440 


5.92 
11.34 
11.59 
12.67 


^— 


54.1 












115.8 







Average ClO.94 



annual sales under $40,000 it was 
$38.06 and for those having annual 
sales of $180,000 and over, $52.33. 
Similar differences for stores of dif- 
ferent size hold for the other years. 
The graphic parts of the total sections 
of Tables 17 and 18 reveal these facts 
for 191 8 and 1914. 

In the discussion of the relation of 
selling expense to sales and total ex- 
pense for stores of different size, no 
distinction was made for stores ac- 
cording to location. A classification 



providing for this is made in Tables 
10 to 18, inclusive, two city-groups 
being distinguished : cities with popu- 
lation of less than 40,000 and cities 
with population of 40,000 and over. 

The records of 303 stores for 1919 
are available for the analysis of the 
relation of selling expense to total net 
sales for stores classified by both size 
and location. Details are contained in 
Table 10. For the 225 stores located 
in the small cities, selling expense 
constitutes $8.29 per $100 of total 



46 



TABLE 14 

TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 

OF TOTAL NET SALES, FOR 154 STORES CLASSIFIED BY 

SIZE OF CITY AND STORE, 1914 





Classified 

Total 
Met Sales 
(In OOO's) 


Number 

of 
Stores 


Total 
Met Sales 


Total 
Selling 

Expense 


Selling Expense per $100 of Total Hot Sales 


S1Z9 
Of 

City 


Amount 
< 


Per Cent. 


(In OOO'a) 


Graphic 
) 20 40 60 80 100 120 14C 


Actual 




Total 
(Average) 


154 


$9,228,220 


$1,059,414 


$11.49 




100.0 






Total 
(Avar age) 


Dnder $40 
$40 to J80 
{80 to $180 

$180 & over 


73 

52 

24 

5 


1,905,044 
2,889,745 
2,738,621 
1,694,810 


174,315 
321,857 
327,227 
236,015 


9.15 
11.14 
11.95 
13.93 


79.7 
07.0 

104.1 
121.3 












: 




Total 
(Avoragg) 


115 


4,777,138 


483,712 


10.13 


ao.2 






Onder 
40 


Under $40 
$40 to $30 
$80 to $180 

$180 & over 


65 
38 
11 


1,667,425 
2,037,513 
1,073,200 


148,192 

213,074 
121,846 


3.89 
10.49 
11.36 


77.4 
91. t 
99.0 




: 




• 




Total 
(Average ) 


59 


4,451,082 


575, 702 


12.93 


112.5 




; 




Under $40 
$40 to $80 
$80 to $180 

$180 & over 


7 
14 
13 

5 


237,619 

852,232 

1,666,421 

1,694,810 


26,123 
103, 183 
205,331 
236,015 


10.99 
12.69 
12.32 
13.93 


95.7 
110.5 
107.3 
121.3 


40 and 
ovar 

















Average $11.43 



net sales, while for the 78 stores 
located in large cities it constitutes 
$11.56. That is, the average amount 
for the first group is 83.5 per cent., 
and for the second group, 116.4 per 
cent, of the average for all of the 
stores. For the 154 stores which are 
compared from year to year, the aver- 
age amount for 1919 for the 115 stores 
in the small cities is $8.96 and for the 
39 stores in the large cities, $11,80. 
The amounts of selling expense per 
$100 of total net sales are not only 



larger for the stores in the large, than 
for those in the small cities, when the 
stores are treated as a total, but also 
when those of a given size but with 
different location are compared. 

For both groups of stores differ- 
ently located, the amounts of selling 
expense per $100 of total net sales 
increase as the stores increase in size. 
For the 225 stores in the small cities 
the difference between the amounts of 
selling expense per $100 of total net 
sales for the small and the large 



47 



stores is 62.5 per cent. Omitting' the 
single store in the large city-group, 
which has a selling expense of $13.08 
per $100 of total net sales, the same 
tendency for the amounts to increase 
as the stores increase in size, noted 
for the stores located in small cities, 
holds for those located in the large 
cities. The number of stores located 
in the large cities, however, is rela- 
tively small and serves as an uncer- 
tain basis for generalization. 



The year-to-3^ear comparison of the 
relation of selling expense to total net 
sales for the 154 identical stores, dis- 
tributed according to location, is in- 
teresting. For each of the years, with 
a single exception, the amounts in- 
crease as the stores increase in size. 
The trend is so unmistakably evident 
as to warrant the conclusion that 
selling expense in terms of sales is 
higher in the large, than it is in the 
small stores. 



TABLE 15 

TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OP SELLING EXPENSE PER $100 OF 

TOTAL EXPENSE, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE OF 

CITY AND STORE, 1919, 1918, AND 1914, COMBINED 



Size 


ClasElfled 

Total 
llet Sales 
(In 000' £) 


;i'OTber 

of 
Store- 
years 


Total 
Expense 


Total 
Soiling 
Expense 


Selling Expense per $100 of Total Expense 


of 

Cltv. 

(In OCiO's; 


Amoimt 

( 


Per Cent. 


Graphic , ^ , 
Actual 

) 20 40 60 80 100 120 




Total 
(Averace) 


462 


$9,684,815 


$4,851,112 


$50.09 




100.0 








Under $40 
$40 to $80 
^0 to tl80 

Sl80 & over 


129 

172 

117 

44 


741,381 

1,981,375 
2,897,244 
4,064,815 


304,954 

913, 357 

1,491,801 

2,141,000 


41.13 
46.10 
51.49 
52.67 


82.1 

92.0 

102.8 

105.2 


Total 
(Average) 


: 


i 












Total 
(Average ) 


345 


4,208,734 


2,061,362 


48.98 


97.8 




i 




Under $40 
$40 to $80 
$80 to $180 

f.180 & over 


121 

138 

77 

9 


669, 915 
1,455,231 
1,667,871 

415,717 


276,723 
670, 140 
892,563 
221,936 


41.31 
46.05 
53.52 

53.39 


82.5 

91.9 

106.8 

106.6 


Under 
40 
















Total 
(Average) 


117 


5,476,081 


2,789,750 


50.94 


101.7 








Under $40 
$40 to $80 
.«60 to $180 

$180 8: over 


8 
34 
40 
35 


71,466 

526,144 

1,229,376 

5,649,098 


28,231 

243,217 

599,238 

1,919,064 


39.50 
46.23 
48.74 
52.59 


78.9 

92.3 

97.3 

105.0 


40 and 


: 















Average $50.09 



48 



A similar comparison of the rela- 
tion of selling expense to total ex- 
pense may be made for the 154 stores 
differently located. For the combined 
years, the average amount of selling 
expense per $100 of total expense for 
the 345 store-years, for stores in the 
small cities, as shown in Table 15, is 
$48.98, and for the 117 store-years, 
for the stores in the large cities, 
$50.94. That is, the amount for stores 
in the small cities is 97.8 per cent., 



and for the stores in the large cities, 
101.7 per cent, of the average for all 
stores, irrespective of location. When 
stores of the same size, but with dif- 
ferent location, are compared, an in- 
verse condition obtains. The amounts 
are generally larger for the stores in 
the small than for those in the large 
cities. The size of the averages for 
the two city-groups is explained by 
the proportions of stores of different 
size which are included. "Within each 



TABLE 16 

TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OP SELLING EXPENSE PER $100 OP 

TOTAL EXPENSE, FOR 154 STORES CLASSIFIED BY SIZE OF 

CITY AND STORE, 1919 



81z» 


ClBBslfled 

Total 
Het Sales 
(In OOO'e) 


Number 

of 
Stores 


Total 

Expense 


Total 
Selling 
Expence 


Selling Expense per $100 of Total 


Expense 


or 

city. 
(la 000 8 ) 


Amount 


Per Cent. 




5 20 


Graphic 
40 60 80 100 120 


Actual 




Total 
(Average) 


154 


$4,273,325 


C^2, 182,027 


$51.06 


i 


100.0 








Under S40 

^ to 2eo 

^0 to $180 
$160 & over 


14 
57 
56 
25 


76,237 

566,162 

1,361,844 

2,269,062 


29,018 

246,207 

719,436 

1,187,366 


38.06 
43.49 

52.83 
52.33 








74.5 


(Average) 




85.2 
103.5 
102.5 
















Total 
(Avcrtre ) 


115 


1,793,459 


896,863 


50.01 


97.9 








Under J40 
§40 to $80 
$80 to S180 

JlBO Sc over 


14 

51 

44 

6 


76,237 
481,773 
953,437 
282,007 


29,018 
211,678 
509,410 
146,757 


38.06 
43.94 
55.43 
52.04 








74.5 


Under 
40 


^^^^^ 


86.1 
104.6 
101.9 


I 




! 








Total 
(Avert ge ) 


Z9 


2,479,866 


1,285,164 


51.62 


101.5 




; 


40 and 


Under S40 
§40 to C80 
$80 to $180 

$180 h over 


6 
14 
19 


64,404 

468,407 

1,987,055 


34,529 

210,026 

1,040,609 


40.91 
51.43 
52.57 


80.1 
100.7 
102.6 












"" '" 
















Averace $51.06 





49 



TABLE 17 

TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OF 

TOTAL EXPENSE, FOR 154 STORES CLASSIFIED BY SIZE OF 

CITY AND STORE, 1918 



Slzo 

of 

City 

(In 000' a) 


Classified 

Total 
Het Sales 
(in 000' s) 


llijmber 

of 
Stores 


Total 

Expense 


Total 
Selllne 
Expense 


Selling Expense per ClOO of Total Expense 


/c-.ount 


Per Cent. 


Graphic ^,<,t„3j_ 
D 20 40 60 80 100 120 




Total 
(Average; 


154 


§3,245,123 


Cl, 603, 671 


§49.63 




100.0 






Total 
(Average) 


Under 540 

^ to feo 

580 to $180 
§180 & over 


42 
63 
S5 
14 


248,315 

755,488 

905,872 

1, oc3,443 


101,621 
345,203 
445,138 
717,619 


40.92 
45.70 
49.14 
53.82 


82.5 
92.1 
99.0 

108.4 


i 












Total 
(Average ) 


115 


1,412,863 


680,737 


48.18 


97.1 








Under §40 
§40 to §80 
§80 to §180 

§180 e; over 


41 

49 

22 

3 


237,507 
539,094 
502,552 
133,710 


99,513 
244,788 
261,307 

75,179 


41.90 
45.41 
52.00 
56.23 


84.4 

91.5 

104.8 

113.3 


XJndQT 
40 


1 
















Total 
(Average) 


39 


1,830,260 


928,884 


50.75 


102.3 


* 


— 


40 and 


Under §40 
§40 to ^0 
§80 to §180 

§180 & over 


1 
14 
13 
11 


10,808 

216,394 

403,320 

1,199,738 


2,108 
100,505 
183,831 
642,440 


19.50 
46.45 
45.58 
53.55 


32.3 

93.6 

91.6 

107.9 















Average ^43. 63 



city-gToup, the amounts increase as 
the stores increase in size, the average 
amount being $41.31 for the small 
stores, and $53.39 for the large stores 
in the small cities. Similar differ- 
ences obtain for the stores located in 
the large cities. In this comparison 
the stores are combined for the years 
1919, 1918, and 1914. 

In Tables 16 to 18, inclusive, facts 
similar to those given immediately 



above are shown for the years 1919, 
1918, and 1914, separately. The aver- 
age amount of selling expense per 
$100 of total expense is larger for 
each of the years in the large cities 
than for those in the small cities. But 
when stores of the same size, but with 
different location, are compared an 
inverse condition obtains. It is this 
latter comparison which is the more 
significant. Within both groups of 



50 



TABLE 18 

TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OP SELLING EXPENSE PER $100 OP 

TOTAL EXPENSE, FOR 154 STORES CLASSIFIED BY SIZE OF 

CITY AND STORE, 1914 





Classified 

Total 
Net Sales 
(In 000' a) 


Number 

of 
Stores 


Total 
Expense 


Total 
Selling 

Expense 


Selling Expense per $100 of Total Expense 


of 

City 

(in 000' 8) 


Amoijnt 
< 


Per Cent. 


^'•^P'^^^ Actval 
3 20 4p 60 80 100 120 




Total 
(Average ) 


154 


52,168,367 


51,059,414 


$48.86 




100.0 








Under $40 
$40 to $30 
$80 to $180 

$180 & over 


73 

52 

24 

5 


416,829 
659,705 
629,523 
452,305 


174,315 
321,857 
327,227 
256,015 


41.82 
48.79 
51.98 
51.05 


85.6 

99.9 

106.4 

104.5 


Total 


















Total 
(Average) 


115 


1,002,412 


483,712 


43.25 


98.8 








Under $40 
$40 to 380 
§80 to 5180 

$180 k over 


66 
38 
11 


356,171 
434,359 
211,882 


148,192 
213,674 
121,846 


41.61 
49.19 
57.51 

• 


85.2 
100.7 
117.7 


Under 
40 














Total 
(Average) 


39 


1,165,955 


575,702 


49.38 


101.1 




j 




Under $40 
$40 to $80 
$80 to $180 

$180 k over 


7 
14 
13 

5 


60, 653 
225,346 
417,646 
462,305 


26,123 
100,183 
205,381 
236,015 


43.07 


88.1 

98.3 

100.7 

104.5 


40 and 
over 


"'^^"^^'" i 





















Average 548,86 



cities the amounts increase as the 
stores increase in size. To this gen- 
eral rule there are no exceptions, the 
regularity of the increase, however, 
being more noticeable in some than in 
other years. The graphic parts of 



these tables throw into relief the 
changes from store-group to store- 
group, the lengths of the bars being 
proportional to the amounts which 
they represent. 



51 



E. — Summary. 

From a consideration of Tables 1 
to 18, inclusive, certain definite re- 
lationships between selling expense 
and sales, and selling expense and 
total expense, have been discovered. 

(1). The amounts of selling expense 
per $100 of total net sales de- 
creased between 1914 and 
1918, and 1918 and 1919, not- 
withstanding the fact that the 
average amounts of total net 
sales and of selling expense 
per store increased between 
these years. 

(2). The average amount of selling 
expense per $100 of total ex- 
pense increased between 1914 
and 1918, and 1918 and 1919, 
notwithstanding the fact that 
both total expense and selling 
expense per store increased be- 
tween these years. 

(3). The amounts of selling expense 
per $100 of total net sales de- 
creased between 1914 and 
1918, and 1918 and 1919, not 
only for all stores, but like- 
wise for stores classified ac- 
cording to size. 

(4). The amounts of selling expense 
per $100 of total expense 
which, as indicated above, in- 
creased between 1914 and 1918, 
and 1918 and 1919 for the 
stores treated as a whole, de- 
creased for the stores with an- 
nual sales of less than $40,000 
and of $40,000 to $80,000. 
They are uncertain as to direc- 



tion from year to year for 
stores with annual sales in ex- 
cess of these amounts. 

(5). The amounts of selling expense 
per $100 of total net sales are 
lower for each year and for all 
years for stores located in 
small cities than for those lo- 
cated in large cities. 

(6). The amounts of selling expense 
per $100 of total expense are 
lower for each year and for the 
combined years for the stores 
in the small cities than for 
those in the large cities, when 
the stores are treated as a 
total. When stores of the same 
size, but with different loca- 
tions are compared, an inverse 
condition obtains. 

(7). The amounts of selling expense 
per $100 of total net sales in- 
crease as stores increase in 
size. This condition obtains for 
stores treated as a whole and as 
classified by city location, not 
only for the combined, but also 
for the individual years, 1919, 
1918, and 1914. 

(8). The amounts of selling expense 
per $100 of total expense in- 
crease as the stores increase in 
size. This condition obtains 
for the combined and for the 
individual years 1919, 1918, 
and 1914, not only for the 
stores as a whole, but also when 
they are classified by the size 
of the city in which they are 
located. 



52 



2. — YEARLY AMOUNTS OF SELLING EX- 
PENSE IN RELATION TO THE 
AMOUNTS OF STOCK CARRIED, FOR 
STORES CLASSIFIED BY YEARS, BY 
SIZE, AND BY RATES OF STOCK TURN- 
OVER. 

The discussion of store inventories 
in the fifth volume of the Bureau's 
study of Costs, Merchandising Prac- 
tices, Advertising and Sales in the 
Retail Distribution of Clothing 
showed that inventories in terms of 
sales decreased between 1914 and 
1918, and 1918 and 1919.* The 
amount per $100 of total net sales for 
223 stores in 1914 was $43.70. For 
the same stores in 1918 it was $41.44, 
and in 1919, $32.72. Similar de- 
creases for 149 stores are shown be- 
low in Table 20. In 1914 the average 
amount was $43.44, in 1918, $40.53, 
and in 1919, $32.84. For the two 
groups of stores the amounts are 
strikingly the same and the direction 
of change from year to year identical. 
• Moreover, a comparison for a vary- 
ing and an identical number of stores 
from year to year showed that inven- 
tories in terms of sales decrease as 
stores increase in size, the regularity 
of the tendency being apparent not 
only when the stores are classified in 
wide, but also when they are placed 
in narrow sales-groups. These 
changes from year to year, and from 
store-group to store-group may be 
said to have been established beyond 
doubt for the stores concerned and 
they are thought to be true for all 
stores.f 

* Vol. V, p. 418. 

t Ibid., Vol. V, p. 420. 



In seeking to discover the relations 
of selling expense to sales and to total 
expense, and to determine, if possible, 
the way in which selling expense may 
be reduced, a complete analysis has 
been made of selling expense when 
the stores are classified by the relative 
amounts of inventory carried. More- 
over, the analysis is extended to 
stores when they are classified by size 
and by rates of stock turnover. It 
was hoped, from a detailed analysis of 
the store records available, that it 
would be possible to determine quan- 
titatively the eifect of size of inven- 
tory on selling expense. In this re- 
spect the conclusions reached are not 
wholly negative. 

A. — Yearly Amounts of Selling Ex- 
pense per $100 of Total Net Sales 
and per $100 of Total Expense, 
1919, 1918, and 1914. 

For the three years 1919, 1918, and 
1914, the records of 149 stores are 
available for study. The selling ex- 
penses for the stores classified by 
amounts of inventory per $100 of 
total net sales are expressed first, in 
terms of net sales, and second, in 
terms of total expense. 

For the combined years, the stores 
having on the average an inventory of 
less than $20 per $100 of total net 
sales had a selling expense per $100 
of total net sales of $8.40; the stores 
having on the average an inventory 
between $20 and $40 per $100 of total 
net sales had a selling expense, simi- 
larly expressed, of $11.66. From this 
figure as a maximum, the amounts of 



53 



selling expense per $100 of total net 
sales decrease as the size of the in- 
ventories increase. It will be noted 
that the direction of the change in 
the amounts from inventory-group to 
inventory-group is certain only for 
those stores having inventories in ex- 
cess of $20 per $100 of total net sales. 
This is true not only for the com- 
bined years, but also for the years 
separately. 

A casual inspection of Table 19 
might lead to the belief that the oc- 
casion for the low selling expense per 
$100 of total net sales is the amount 
of inventory carried. This, however, 
is not necessarily the case. The dis- 
cussion on pages 42 to 44 showed that 
the amounts of selling expense per 
$100 of total net sales increase as 
stores increase in size. Further, the 
discussion in Volume V* of the 
Bureau's report on Costs, Merchan- 
dising Practices, Advertising and 
Sales in the Reiail Distribution of 
Clothing, and in Tables 28 to 31, in- 
clusive, following, show that the size 
of inventories per $100 of total net 
sales decreases as the stores increase 
in size. That is, the stores which have 
high selling expense have relatively 
low inventories in terms of sales. Ac- 
cordingly, the amounts of selling ex- 
pense in terms of sales decrease as 
the size of the inventories, similarly 
expressed, increases. This condition, 
however, may be due not so much to 
the size of the inventories as to the 
size of the stores that reported the 
sales. 

The importance of the size of the 

• Page 420. 



stores, as such, may be eliminated 
from consideration and the effect of 
the size of the inventory noted by ex- 
pressing the selling expense per $100 
of total net sales in terms of the 
amount sold per $1 of inventory.f 
This is done in column 6 of Table 19, 
and is graphically shown by the cor- 
responding bars. 

What do these figures reveal? The 
average selling expense per $100 of 
total net sales for the amount sold per 
$1 of inventory is $4.09. For the 
stores having inventories of less than 
$20 per $100 of total net sales the cor- 
responding cost is $1.47. Selling ex- 
penses, so expressed, increase without 
an exception as the amounts of in- 
ventory in terms of sales increase. It 
should be kept in mind that in these 
figures the size of the store, as a con- 
trolling factor in determining selling 
expense, has been eliminated since in 
each case the selling expense per $100 
of total net sales applies to the 
amounts sold per $1 of inventory. 
The uncertain trend of the amounts of 
selling expense per $100 of total net 
sales, reflected in Table 19 for the 
stores with low inventories, has been 
removed and regularity secured as to 
the direction of change for stores with 
different amounts of inventory. 

The above discussion which relates 
to the three years combined applies 
also to the individual years. With- 
out an exception the selling expenses 
per $100 of total net sales for the 
amount sold per $1 of inventory in- 
crease in each of the years as the size 

t The method by which this unit is com- 
puted is explained on page 4, item 17. 



54 



TABLE 19 



AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES FOR THE AMOUNT SOLD 

PER $1 OF INVENTORY, FOR 149 IDENTICAL STORES CLASSIFIED BY AMOUNT 

OF INVENTORY PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 



AnoMnt of 
Inventory 
per $100 of 
TotBl 
Hot Salsa 



Onder |20 
t20 to t40 
140 to (60 
%60 i over 



Itadsr |20 
tSO to t40 
|40 to (60 
leo 4 over 



Doder tZO 
|20 te %*0 
%*0 to $60 
$60 fc over 



168 
177 



Omlar tso 
$£0 to $40 
|40 to $C0 
$60 & over 



Graphic 
20 40 60 60 100 120 



$10.88 



8.40 

11. «6 
10.08 
9.37 



10.52 



6.75 
10.98 
9.54 
7.65 



10.9 



6.06 
12.47 
9.74 
9.55 



11.56 



10.94 
12.71 
10.96 
9.9S 



100.0 



77.2 
107.2 
92.1 
86.1 



96.7 



80.4 
100.9 
87.7 
«9.4 



100.9 



S5.6 
114.6 
89.5 

es.9 



106.2 



100.6 
116.8 
100.7 
91. S 



Selling EipenM per JlOO of Total Ilct Sales 
per Amcvint Sold per $1 of Inventory 



O 20 40 60 80 li 



$4.09 



1.47 
5.50 

5.01 
6.55 



5.45 



1.55 
S.29 
4.77 
5.28 



4.44 



1.06 
3.74 
4.87 
6.54 



Op 12p 140 1^ lap 



5.03 



1.92 
5.81 
5.48 
6.96 



100.0 



35.9 

es.6 

122.5 
160.1 

84.4 



37.4- 

eo.4 

116.6 
129.1 



108.6 



25.9 
91.4 
119.1 
159.9 



123.0 



46.9 
9S.2 

134.0 
170.1 



ATer&s« $10.89 



Averege $4.09 



of the inventory measured in sales in- 
creases. 

A moment's consideration should be 
given to the averages for the three 
separate years. It will be recalled 
that inventories in terms of sales were 
relatively low in 1919. For the 149 
stores in this year, the amount of sell- 
ing expense per $100 of total net sales 
was $10.52, or $0.46 less than in 1918 
and $1.04 less than in 1914. When 
the amounts of selling expense per 
$100 of total net sales are shown for 
the amount sold per $1 of inventory, 



the difference in the conditions be- 
tween the various years is increased, 
the selling expense in 1919 being ap- 
proximately $1 less than in 1918 and 
$1.58 less than in 1914. This differ- 
ence is attributable, not so much to 
the sales as such as it is to the low 
inventories in relation to sales in 1919. 
The amounts of selling expense per 
$100 of total net sales for stores in 
the combined years and for the years 
separately are averages. If the dis- 
tribution of the amounts of selling 
expense per $100 of total net sales is 



TABLE 20 



TOTAL NET SALES, INVENTORY, AND AMOUNT OP INVENTORY PER $100 OF TOTAL NET 

SALES, FOR 149 IDENTICAL STORES CLASSIFIED BY AMOUNT OF SELLING 

EXPENSE PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 





Amount of 

Selling 

Expense 

per 3100 of 

Total 

Net Sales 


Huraber 

of 
Store- 
years 


Total 
Net Sales 


Total 
Inventory 


Inventory per JlOO of Total Ket Sales 


Years 


Amount 


Per Cent. 




""P'^^^ 1 Actual 
20 40 60 80 100 120 140 160 




Total 
(Average) 


447 


£43,599,972 


♦16,369,406 


e37.54 




100.0 








Total 
(Average) 


Under $6 

ee to Sl2 
$12 i over 


93 
247 
107 


4,247,831 
26,191,256 
13,160,885 


1,930,599 
9,702,173 
4,736,634 


45.45 
37.04 
35.99 


121.1 










95.9 




• 






Total 
(Average) 


149 


20,303,641 


6,657,055 


32.84 












Under 8S 

♦6 to «12 
$12 It over 


S8 
80 
31 


2,322,782 
12,418,163 
5,552,696 


879,810 
4,055,317 
1,731,929 


37.33 
32.66 
31.13 


100.9 


1919 


: 




: 






i 






Total 
(Average) 


149 


14,322,667 


5,804,340 


40.53 






; 






Under $6 

•6 to $12 
$12 & over 


30 
86 
33 


1,187,535 
9,197,800 
3,937,332 


653,961 
3,650,841 
1,499,533 


55.07 
39.69 
38.09 


146.7 


1913 


; 


















Total 
(Average) 


149 


6,973,664 


3,893,010 


43.44 


115.7 








Under |6 

$6 to 412 
$12 h DBer 


25 
81 
45 


737, 514 
4,575,293 
3,660,857 


396,823 
1,996,015 
1,505,167 


53.81 
43.63 
41.12 




1914 










109. S 


















Average $37,54 





studied, it is found that 76 per cent, 
of the stores in the combined years 
had selling expenses per $100 of total 
net sales less than $12 and 55 per 
cent, between $6 and $12. 

In further proof that the amounts 
of selling expense per $100 of total 
net sales decrease as the size of the 
inventory in terms of sales increases, 
it may be noted for the combined 
years, as is shown in Table 20, that 
the average amount of inventory so 
expressed for stores with selling ex- 



pense under $6 per $100 of total net 
sales is $45.45. For the stores having 
selling expenses between $6 and $12 
per $100 of total net sales it is $37.04, 
and for those with selling expenses of 
$12 and over per $100 of total net 
sales it is $35.99. For each of the 
three years, similar decreases in the 
amounts of inventory per $100 of 
total net sales characterize the stores 
with increasing selling expense. 
These relations are shown in Table 20. 
In the foregoing discussion of 149 



56 



TABLE 21 



TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OP 

TOTAL EXPENSE, FOR 149 IDENTICAL STORES CLASSIFIED BY AMOUNT OP 

INVENTORY PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 





Amount of 

Inventory 

per $100 of 

Total 

Net Sales 


Nujnber 

of 
Store- 
years 


Total 
Expense 


Total 
Selling 
Expense 


Selling Expense per vlOO of Total Expense 


Years 


Anotmt 


Per Cent* 




Graph lo 

Actual 

3 20 40 CO 30 100 120 




Total 
(Average) 


447 


$9, <■ 50, 641 


:>l,745,e29 


$50.22 




100.0 




I 




Under $20 
§20 to $40 
^40 to $60 
§60 4 over 


14 

168 

177 

83 


365,310 
5,806,322 
2,456,513 

824,496 


172,900 
3,088,085 
1,128,967 

355,877 


47.59 
53.18 
45.96 
43.16 


94.3 

105.9 

91. S 

85.9 


Total 
(Average) 


1 










1 




Total 
(Average) 


149 


4,168,820 


2,135,072 


51.22 

50.52 
52.91 
46.03 
37.42 


102.0 








Under $20 
§20 to ^ 
t40 to $60 
J60 & over 


7 
83 
51 

8 


209,266 

3,117,375 

751,639 

90,540 


105,711 

1,649,518 

345,965 

33,878 


100.6 

105.4 

91.7 

74.5 


1919 






* 




I 




j 




Total 
(Average) 


149 


3,163,345 


1,573,249 


49.73 


99.0 




i 




Under $20 
#20 to $40 
S40 to $60 
560 & over 


3 
46 
60 
40 


81,440 

1,728,776 

950,082 

403,047 


32,117 
937,441 
427,462 
176,229 


39.44 
54.23 
44.99 
43.72 


78.5 

103.0 

89.6 

87.1 


1918 










• 




1 




Total 
(Average ) 


149 


2,118,476 


1,037,508 


48.97 


97.5 




1 




Under $20 
$20 to $40 
$40 to $60 
$60 & over 


4 
S9 
66 
40 


72,604 
960,171 
754,792 
330,909 


35,072 
501,126 
355,540 
145,770 


48.31 
52.19 
47.10 
44.05 


96.2 

103.9 

93.8 

87.7 


1914 










^^^^^ I 




^^^^^^^^^ 



stores for three years, comparisons 
have been made of the selling expense 
first, in terms of total net sales, and 
second, in terms of net sales for the 
amount sold per $1 of inventory. The 
conclusions which have been reached 
are first, that selling expense per $100 



Average $50.22 

of total net sales decreased between 
1914 and 1918, and 1918 and 1919. 
Second, that for stores with inven- 
tories in excess of $20 per $100 of 
total net sales, the amounts of selling 
expense in terms of sales decrease as 
the size of the inventories in terms 



57 



of sales increases. This tendency, 
however, as has been shown, is due 
to the store size and not to the size 
of inventory. Third, that the amounts 
of selling expense per $100 of total 
net sales for the amount sold for each 
$1 of inventory uniformly increase 
for the combined and for each of the 
years as the amounts of inventory 
per $100 of total net sales increase. 
Fourth, that the selling expense per 
$100 of total net sales per amount sold 
per $1 of inventory was noticeably 
less in 1919 than in either of the other 
years, largely because of the relatively 
small inventories for the stores in this 
year. The general conclusion from 
the above discussion seems to be that 
irrespective of store size, stores which 
have large inventories have relatively 
high selling expense, and to suggest 
the practical conclusion that for all 
stores one way of keeping down sell- 
ing expense is to reduce the size of the 
inventory in relation to sales. 

Another method of comparing the 
amounts of selling expense for stores 
from year to year and for stores with 
different-sized inventories is to ex- 
press them in terms of total expense. 
This is done in Table 21. For the 
combined years, the average selling 
expense per $100 of total expense is 
$50.22. For 1919 the amount was 
$51.22, for 1918, $49.73, and for 1914, 
$48.97. That is, the amounts in- 
creased between 1914 and 1918, and 
1918 and 1919. During these years 
both the total operating expense and 
the selling expense increased. For 
the 154 stores shown in Table 3, page 
36, the total operating expense per 



store increased between 1914 and 1918 
by 49.6 per cent, and between 1914 
and 1919 by 97.1 per cent. The cor- 
responding increases in the amounts 
of selling expense per store were, re- 
spectively, 51.9 per cent, and 106.0 
per cent. Similar increases from 
year to year hold for the 149 stores 
as shown in Table 20. But selling ex- 
pense increased more rapidly than 
did total expense, with tiie result that 
from year to year selling expense in- 
creased when expressed in terms of 
total expense. 

When the stores for the combined 
years and for the years separately are 
classified by the amounts of inventory 
per $100 of total net sales, as in Table 
21, the amounts of selling expense per 
$100 of total expense on the whole de- 
crease as the amounts of inventory 
per $100 of total net sales increase. 
That is, there is an inverse relation- 
ship between the two factors. But 
this is more apparent than real. The 
same line of reasoning which is used 
above * to account for this margin 
applies here. It should be remem- 
bered that the stores with small in- 
ventories per $100 of total net sales 
are generally larger than those with 
large inventories so expressed, and 
that both selling expense and total 
operating expense per $100 of total 
net sales increase as stores increase in 
size. By consulting Tables 10 to 14, 
inclusive, pages 43 to 47, this condi- 
tion for selling expense may be ob- 
served for stores with different loca- 
tion. The movement of total operat- 
ing expense for stores of different 

* Page 54. 



58 



TABLE 22 

TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 

OP TOTAL NET SALES, FOR 149 IDENTICAL STORES CLASSIFIED BY SIZE 

AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET 

SALES, 1919, 1918, AND 1914, COMBINED 



Claselfled 

Total 
Net Sales 


Araoint of 

Inventory 

per SlCO of 

Total 

IJet Sales 


Ifumber 

of 
Store- 
years 


Total 
net Sales 


Total 
Selling 

Expense 


Selling Expense per $100 of 
Total Hot Sales 


Amount 


Per Cent. 


(In OOO'b) 


Graphic 1 
20 40 60 80 100 120 "^ 




Total 
(Average) 


447 


$43,599,972 


$4,746,829 


$10.63 




100.0 




: 


Total 
(Average) 


Under $20 
$20 to $40 
$40 to $60 
$60 & over 


14 

168 
177 

88 


2,059,425 
26,478,436 
11,263,282 

3,798,829 


172,900 
3,088,085 
1,128,967 

355,877 


8.40 
11.66 
10.02 

9.37 


77.2 

107.2 
92.1 
86.1 












Total 
(Average) 


127 


3,532,911 


298,231 


8.44 


77.6 


Dnder $40 


Undor $20 
$20 to $40 
$40 to $60 
$60 & over 


1 
18 
52 
56 


28,933 

560, 460 

1,412,525 

1,530,993 


948 

54,036 

112,294 

130,953 


3.23 
9.C4 
7.95 
8.55 


30.1 
88.6 
75.1 
78.6 








Total 
(Average) 


165 


9,360,348 


877,524 


9.37 


86.1 


$40 to $80 


Under $20 
$20 to $40 
$40 to $60 
$60 & over 


6 
52 
82 
25 


402,009 
3,083,049 
4,458,869 
1,416,421 


29,622 

283,795 
428,579 
135, 528 


7.37 
9.21 
9.61 
9.57 


67.7 
84.7 
88.5 

88.0 












Total 
(Average) 


112 


13,121,494 


1,445,029 


11.01 


101.2 








Under $20 
$20 to $40 
$40 to $60 
$60 !c over 


5 

60 

40 

7 


555, 107 
7,076,841 
4,638,131 

851,415 


53,399 
602,575 
499,659 

89,396 


9.62 
11.34 
10.77 
10.50 


88.4 
104.2 
99.0 
96.5 


$30. to $180 










; 








Total 
(Average ) 


43 


17,585,219 


2,125,045 


12.08 


111.0 






$180 & over 


Under $20 
$20 to $40 
$40 to $60 
$60 & over 


2 

38 
3 

* 


1,073,376 

15,758,086 

753,757 


88,931 

1,947,679 

68,435 


8.29 
12.36 


76.2 
113.6 















Average $10,89 



59 



size is comprehensively treated in 
Volume III * of the Bureau's report 
on Costs Merchandising Practices, 
Advertising and Sales in the Retail 
Distribution of Clothing. Table 21 
should be interpreted with these facts 
in mind. As shewn on page 57, the 
amounts of selling expense per $100 
of total net sales decrease as the size 
of inventories in terms of sales in- 
creases. But the amounts of selling 
expense per $100 of total net sales per 
amount sold per $1 of inventory in- 
crease. A direct relationship would 
also be secured, as in Table 19, were 
the amounts of selling expense per 
$100 of total expense determined for 
each $1 of inventory sold. 

It seems unnecessary to express the 
amounts in this form or to repeat the 
discussion on this point and the con- 
clusions to which it has led. It will 
be sufficient briefly to summarize the 
relation of selling expense to total ex- 
pense as follows: First, the amounts 
increased from 1914 to 1918, and 
from 1918 to 1919. Second, the 
amounts decrease as the amounts of 
inventory per $100 of total expense 
increase. Third, the amounts per 
amount sold per $1 of inventory in- 
crease as the size of the inventory per 
$100 of total net sales increases. 

B. — Yearly Amounts of Selling Ex- 
pense per $100 of Total Net 
Sales and per $100 of Total Ex- 
pense, for Stores Classified by 
Size, 1919, 1918, and 1914. 

In further consideration of the rela- 
tion of selling expense to sales and to 
* Pages 244 to 252, inclusive. 



total expense for stores with inven- 
tories of different size per $100 of 
total net sales, it has been thought of 
interest to classify the stores with re- 
spect to size. This is done in detail 
in Tables 22 to 35, inclusive. 

The method of presenting the data 
is as follows: First, to classify the 
stores by size and by amount of in- 
ventory per $100 of total net sales 
for the combined and for the indi- 
vidual years, and to show the amounts 
of selling expense per $100 of total 
net sales for the stores so treated. 
Second, to show the amounts of in- 
ventor}' per $100 of total net sales for 
the stores of different size classified 
by amounts of selling expense per 
$100 of total net sales. Third, for the 
same group of stores, to express the 
amounts of selling expense in terms 
of $100 of total expense for the stores 
classified by size and by amounts of 
inventory per $100 of total net sales. 

In Tables 18 to 35, inclusive, the 
same 149 stores which were consid- 
ered above are classified by years and 
by size. For the combined years 
1919, 1918, and 1914, the average 
amounts of selling expense per $100 
of total net sales increase as the stores 
increase in size. For those with an- 
nual sales under $40,000, it is $8.44 ; 
for those with annual sales of $40,000 
to $80,000 it is $9.37 ; for those with 
annual sales of $80,000 to $180,000 it 
is $11.01 ; and for those with sales of 
$180,000 and over, it is $12.08. These 
amounts closely correspond to those 
for the 154 identical stores shown in 
Table 11, page 44. 

On the other hand, when the 



60 



TABLE 23 

TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 

OF TOTAL NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY 

AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1919 





Amount of 

Inyentory 

per $100 of 

Total 

Bet Sales 


Number 

of 
Stores 


Toial 
Met Sales 


Total 
Selling 
Expense 


Sailing Expense per $100 of 
Total Net Sales 


€la»iirie4 

Total 
Bftt Sales 
(In 090'a) 


Amount 


Per Cent. 


Graphic 1 

' Actual 

20 40 60 80 100 120 




Total 
(Average) 


149 


$20,303,641 


$2,135,072 


$10.52 




100.0 








Under $20 
$20 to $40 
$40 to $60 
$60 & over 


7 
83 
51 

S 


1, 208, 118 

15,018,367 

3,628,188 

448,963 


105,711 

1,649,513 

345,965 

33,878 


8. 75* 

10.98 

9.54 

7.55 




Total 
(Average) 




104.4 
90.7 
71.8 












Total 
(Average ) 


14 


423,714 


29,018 


6.77 


64.4 


Onder $40 


under $20 
$S0 to $40 
$40 to $60 
$60 it over 


2 

8 

4 


68,054 
244,012 
116,648 


6,275 

15,797 

6,946 


9.22 
6.47 
5.95 


87.6 
61.5 
56.6 




— — 




Total 
(Average) 


55 


3,082,152 


233,343 


7.59 


72.1 


$40 to $80 


Under $20 
$20 to $40 
$40 to $60 
$60 i over 


« 

ZS 

23 

3 


150,276 
1,237,723 
1,472,999 

171,154 


7,320 

94,720 

122,592 

9,211 


4.87 
7.36 
8.32 
5.38 


46.3 
70.0 
79.1 
51.1 




^— 




Total 
(Average ) 


56 


6,607,089 


700,800 


10.61 


100.9 








Under $20 
$20 to $40 
$40 to $60 
$60 & over 


4 
37 
14 

1 


384,466 
4,382,158 
1,679,299 

16i;i66 


34,307 
465,124 
183,648 

17,721 


8.92 
10.61 
10.94 
11.00 


84.9 


$80 to $180 






; 


104.0 
104.6 




! 




; 




Total 
(Average) 


24 


10,135,636 


1,171,411 


11.50 


109.3 




; 




Under $20 
C2Q to S40 
$40 to $60 
$60 8c over 


1 
22 

1 


673,376 

9,230,452 

231,873 


64,084 

1,033,399 

23,923 


9.52 
11.67 

10.33 

• 


90.5 
110.9 
98.1 


$180 & over 










i 



Average {10.52 



61 



TABLE 24 

TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 

OF TOTAL NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY 

AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1918 





Amoujit cf 

Inventory 

per tlOO of 

Total 

Net Sales 


(hjjnber 

of 
Stores 


Total 
Net Seles 


Total 
Selling 
Expense 


Selling Expense per $100 of 
Total Ket Sales 


Claeelfled 

Totai 
Vet Sales 


Amount 


Per Cent. 


(In OCiO'e) 


Graphic 

Actual 
p 2P 4P €<) 80 100 120 




Total 
(Average) 


149 


$14,322,667 


$1,573,249 


$10.98 


i 






^^^« 






ttoder i20 
ISO to ^ 
|40 to $60 
?60 & over 


5 
46 
60 
40 


630,649 
7,617,748 
4,369,893 
1,884,377 


32,117 
937,441 
427,462 
176,229 


6,05 

12.47 

9.74 

9.35 


: 




Total 
(Average ) 


^^^ 


55. 1 

113.6 




88.7 




• 




! 
1 






Total 
(Average ) 


42 


1,256,796 


101,621 


8.09 


73.7 


Vaier |40 


Under JeO 
$20 to $40 
$40 to $60 
$60 fc over 


6 
13 
23 


209, 528 
381,673 
665,694 


17,520 
27,892 
56,209 


8.36 
7.31 
8.44 


76.1 
66.6 

76.9 




Total 
(Average ) 


60 


3,501,019 


331,958 


9.48 


86.5 




^^^ 


#40 to $80 


Under $20 
$20 to $40 
$40 to $60 
$60 & over 


2 

15 
29 
14 


130, 649 

901,852 

1,632,061 

836,457 


7,270 

97,097 

144,693 

82,898 


6.66 

10.77 

8. 87 

9.91 


50.6 
98.1 
80.8 
90.3 
















Totnl 
(Average) 


33 


3,860,130 


422,051 


10.93 


99.5 






.$80 to tl80 


Dnder $20 
$20 to $40 

$40 to $do 
$60 & over 


14 

16 

3 


1,623,524 
1,854,280 

382,326 


194,659 

.190,370 

37,122 


11.98 

10.27 

9.71 


109.1 






93.5 




i 


88.4 




! 






Total 
(Average) 


14 


5,704,723 


717,619 


12.68 


114.6 








4160 !t over 


Under $20 
$20 to $40 
$40 to $60 
J60 & over 


1 

11 

2 

■ 


400,000 

4,782,844 

521,879 


24,847 

628, 265 

64,507 


6.21 
13.14 
12.36 


56.6 






112.6 




i 





Average $10.98 



62 



TABLE 25 

TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EIXPENSE PER $100 

OF TOTAL NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY 

AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1914 





Amount of 

Inventory 

per f-100 of 

Total 

llet Sales 


H\imber 

of 
Stores 


Total 
Not Sales 


Total 
Selling 
Expense 


Selling Exponae par $100 of 
Total Net Sales 


Classified 
Total 


Anount 

C 


Per Cent. 


(In OOO'e) 


Graphic 

1 Actual 

20 40 60 80 100 120 140 




Total 
(Average) 


149 


$8,973,664 


$1,037,508 


$11.55 




100.0 








Under tZO 
JSO to ^ 
Uo to $60 
$60 i over 


4 

39 

66 
40 


320,653 
3,942,321 
3,245,201 
1,465,464 


35,072 
501,126 
355,540 
145,770 


10.94 

12.71 

10.96 

9.95 


94.6 

109.9 

94.3 

86.1 


Total 
(Average) 














^ 




Total 
(Average) 


71 


1,847,402 


167,592 


9.07 


73.5 


tinder Uo 


Under §20 
$20 to Uo 
540 to $60 
$60 i over 


1 
10 
31 
29 


23,933 
282,873 
736,840 
748,751 


948 
30,241 
63,605 
67,793 


3.23 

10.69 

8.72 

9,05 


28.4 
92.5 
75.4 
73.3 








* 




Total 
(Average ) 


50 


2,777,177 


311,723 


11.22 


97.1 








Uadar t20 
$20 to Uo 
Uo to 560 
§60 8t ovor 


2 
15 
25 

e 


121,084 

893.474 

1,353,809 

403,810 


15,032 

91,978 

161,294 

43,419 


12.41 
10.29 
11.91 
10.62 


107.4 


Ho to $80 








103.0 
91.9 












Total 
(Average) 


23 


2,654,275 


322,173 


12.14 


105. 








Under $20 
$20 to $40 
Uo to $60 
$60 & over 


1 

9 

10 

3 


170,641 
1,071,159 
1,104,553 

307,923 


19,092 
142,892 
125,641 

34,553 


11.19 
13.34 
11.37 
11.22 


96.8 
115.4 
96.4 
97.1 


^0 to ^0 


1 
















Total 
(Average) 


5 


1,694,810 


236,015 


13.93 


i 


120.5 






JlSO i over 


Under $20 
$20 to $40 
$40 to $60 
$60 8: over 


5 


1,694,310 


236,015 


13.93 


! 


' 120.5 




1 
I 



Average $U.S6 



63 



amounts of selling expense per $100 
of total net sales are expressed in 
terms of sales per $1 of inventory, as 
in Table 26, they are essentially con- 
stant for the stores with annual sales 
less than $180,000, and noticeably 
less for the group having annual sales 
of $180,000 and over. This, however, 
is due not so much to the size of the 
store, as noted above, as it is to the 
size of the inventory. The large 



stores are precisely those with low in- 
ventories per $100 of total net sales. 
When selling expense is expressed in 
terms of sales per $1 of inventor}', 
the advantage accruing to large stores 
because of small inventory is at onca 
evident. We are not so much con- 
cerned here, however, with the selling 
expense per $100 of total net sales for 
stores of different size as we are with 
the amounts for stores of essentially 



TABLE 26 

AMOUNT OP SELLING EXPENSE PER $100 OF TOTAL NET SALES FOR THE AMOUNT SOLD 

PER $1 OF INVENTORY, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OP 

INVENTORY PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 




ATsrag* iS.03 



the same size, but with different 
amounts of inventory in relation to 
sales. If the comparisons are re- 
stricted to selling expense in terms of 
sales alone, for the stores of the same 
size, but with varying inventories, it 
is difficult to see any unmistakable 
tendency for the selling expense 
either to increase or decrease. This 



is noticeably true for the stores with 
sales under $40,000. For the stores 
with annual sales of $40,000 to $80,- 
000, however, the amounts seem to in- 
crease with the size of the inventory 
for the stores having inventories less 
than $60 per $100 of total net sales. 
On the other hand, an inverse condi- 
tion characterizes the stores with an- 



TABLE 27 

TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 

OF TOTAL NET SALES, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF AVERAGE STOCK PER $100 OF TOTAL NET SALES, 1919 





Amount of 

Averaro Stock 

per $100 of 

Total 

K«t Saleo 


Number 

of 
Stores 


Total 
Het Sales 


Total 
Selling 
Expense 


Selling Expense per $100 of Total Net Sales 


Classified 
Total 


Amount 


Per Cent. 


(In 000' a) 


Graphic Actual 
3 20 40 60 80 100 120 140 




Total 
(Average) 


124 


$18,301,848 


{1,928,893 


$10.54 




100.0 




i 


Total 


Under JZO 
$20 to f40 
540 S: over 


13 
65 

46 


4,466,232 

10,722,916 

3,112,700 


557,827 

1,093,673 

277, 193 


12.49 
10.20 
8.91 


118.5 
96.8 
84.5 


(Averaee) 






: 




1 

1 
! 

! 




Total 
(AverBEo) 


16 


485,550 


32,474 


6.69 


63.5 


Dnder fr40 


Under tZO 
£20 to J-iO 
J40 & ovor 


7 
9 


229,242 

256,308 


15,387 
17,087 


6.71 
6.67 


63.7 
63.3 




Total 
(Average ) 


48 


2,747,107 


215,513 


7.65 


74.5 






UO to J80 


Under f20 
$20 to S40 
§40 ft over 


3 
18 
27 


213,343 
1,044,586 
1,489,178 


17,503 
72,369 
125,641 


8.20 
6.93 
e.'i4 


i 


77.8 

C5.7 
80.1 






; 




Total 
(Avori-ee) 


36 


4,411,137 


448,296 


10.16 


96.4 




j 


Sec to $180 


Under §20 
'20 to $40 
'40 k over 


3 

24 

9 


301,036 
2,974,765 
1,135,336 


25,147 
312,612 
110, 537 


8.35 

10.51 

9.74 


79.2 
99.7 
92.4 


1 












Total 
(Avfrace) 


24 


10,e50,054 


1,232,610 


11. £7 










Sieo U over 


Unccr J 2D 
C20 to $40 
f40 t- over 


7 

16 

1 


3,951,653 


515,177 


13.04 
10.71 
10.52 


123.7 

1C1.6 
97.9 














1 "'- 





Averasc $10.64 



65 



nual sales of $80,000 to $180,000. For 
the largest stores — those with annual 
sales of $180,000 and over— the in- 
stances are insufficient for each of the 
inventorj'-groups to serve as a basis 
for generalization. Tables 23 to 25 
show similar details for 1919, 1918, 
and 1914, respectively. 

"When, however, as in Table 26, the 
selling expenses per $100 of total net 
sales are shown in terms of the 
amount sold per $1 of inventory, no 
such uncertainty as to direction of 
change from inventory-group to in- 
ventory-group in stores of different 
size exists. In every group the 
amounts grow larger as the amounts 
of the inventories per $100 of total 
net sales increase. This does not hold 
alone for the combined years; it like- 
wise characterizes the selling expense 
of the stores in 1919, 1918, and 1914. 
It is unnecessary to note in detail 
the size of the amounts and the nature 
of the changes from store-group to 
store-group or from inventory-group 
to inventory-group for each of the 
three years. Both the amounts and 
changes are graphically shown in 
Table 26. 

The outstanding fact shown by 
this graphic summary, for the vari- 
ous groups of stores, is the similarity 
of the increases in the selling expense 
per $100 of total net sales per amount 
sold per $1 of inventory in each of 
the three years. From these arrays 
it seems safe to conclude for stores 
which do a given amount of business, 
that the selling expenses per $100 of 
sales for the amount sold per $1 of 
inventory decrease as the inventories 



in terms of sales are reduced. This 
is only another way of saying that 
selling expense may be reduced in 
terms of sales by increasing the 
rapidity with which stock, as shown 
by size of inventories, is turned. 
Moreover, it suggests at once the 
soundness of the conclusion found in 
the Bureau's study on Costs, Mer- 
chandising Practices, Advertising and 
Sale9 in the Retail Distribution of 
Clothing that the more rapid turnover 
of stock in the large stores is a com- 
pensating feature for the increased 
costs of doing business in these stores.* 
In addition, it connects up, in a very 
definite way, selling expense, sales, 
and the size of the inventory. 

The relationship between the 
amount of stock carried per $100 of 
total net sales and the selling expense 
in terms of sales may be tested by 
classifying the stores according to the 
amount of average stock carried.f 
This is done in Table 27. The records 
of 124 stores are available for such a 
study. While it cost, on the average 
in 1919, $10.54 to sell $100 worth of 
goods, the corresponding cost for 

* It is true that a comparison of inven- 
tories, on a cost basis, with sales of goods at 
selling price, does not suffice to measure 
properly stock turns. If the annual inven- 
tory at the close of the year is taken roughly 
to represent the average stock carried 
throughout the year, such a comparison 
serves to measure capital turn. The rela- 
tionships between the annual stock and 
annual capital turns for 1919 are shown in 
Volume V of the Bureau 's study of Costs, 
Merchandising Practices, Advertising and 
Sales in the Eetail Distribution of Clothing, 
pp. 488 to 492. 

■f To determine the average stock carried, 
merchants were directed to add together the 
amounts of stock on hand at the close of 
each month and divide by 12. 



66 



TABLE 28 

TOTAL NET SALES, im'ENTORY, AND AMOUNT OF INVENTORY PER $100 OP TOTAL NET 

S.VLES, FOR 149 IDENTICAL STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, 

1919, 1918, AND 1914, COMBINED 



Claeslf lad 

Total 
Nat Sales 
(in 000' 3) 



Total 
(Average) 



(Alder S40 



i40 to tao 



$aO to $130 



llSO & over 



Ajnoimt of 

Selling 

E;toon39 

per JlOO of 

Total 

(Jot Sales 



Total 
(Average) 



Onder J6 

§6 to $12 
$12 & over 



Total 
(Average) 



Under $6 

$5 to |12 
Sl2 8t over 



Totol 
(Average) 



Under |6 

$6 to 812 
$12 i over 



Store- 
years 



2-17 
107 



Total 
(Averaje) 



Under $6 
$6 to $12 
$12 k over 



Total 
(Avorsse) 



Under $5 
$6 to C12 
$12 i over 



Total 
Hot Sales 



J4J,500,972 



4,247,831 
26,191,?56 

13,160,895 



3,532,911 



1,196,433 

1,765,845 

570,623 



9,360,348 



2,255,483 
5,029,311 
2,075,554 



Total 
Inventory 



516,369,406 



1,930,599 
9,702,173 
4,736,634 



1,989,513 



690,355 
963,401 
335,762 



4,254,795 



978,714 

2,341,134 

934,897 



13,121,494 



795,910 
7,966,900 
4,353,684 



17,585,219 



11,429,200 
6,156,019 



5,193,li: 



261,530 
3,260,280 
1,671,321 



4,931,962 



3,137,308 
1,794,654 



Inventory per $100 of Total Net Sales 



39.58 



32.86 
40.92 
38.34 



27.45 
29.15 



$37.54 



45.15 
37.04 
35.99 



56.31 



57.70 
54.56 
58.34 



45.46 



43.39 
46. SS 
45.04 



Graphic 



100.0 



121.1 
98.7 
95.9 

150.0 

153.7 
145.3 
155.7 



121.1 

U5.5 
124.0 
120.0 



105.4 

87.5 
109.0 
102.1 



74.7 



73.1 
77.7 



Average $37.54 



Stores with average stock un(ier $20 
per $100 of total net sales was $12.49. 
For those with average stock of $20 
to $40 per $100 of total net sales it 
was $10.20, while for those with aver- 
age stock of $40 and over it was $8.91. 
This ten(iency to (iecrease, however, 
is due to the size of the store rather 



than to the amount of stock carried. 
By expressing the selling expense in 
relation to sales for a given amount 
sold for each dollar of average stock, 
the $10.54 given above drops to $3.06. 
The amounts for the stores, classified 
by the relative size of the stock car- 
ried, increase from $1.87, for those 



67 



TABLE 29 

TOTAL NET SALES, INVENTORY, AND AMOUNT OF INVENTORY PER $100 OF TOTAL NET 
SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SELL- 
ING EXPENSE PER $100 OF TOTAL NET SALES, 1919 



Classified 

Total 
net Salee 


Amount of 

Selling 

Expense 

per ?1C0 of 

Total 

Net Sales 


Number 

of 
Stores 


Total 
Net Sales 


Total 
Inventory 


Inventory per $100 of Total Net Sales 


Amount 


Per Cent. 


(In OOO'e) 


Graphic 
S 20 40 60 60 100 120 140 160 18C 


Actual 




Total 
(Average) 

Under $6 

$6 to $12 
$12 & over 


149 


$20,303,641 


$6,667,056 


$32.84 




100.0 








58 

80 
31 


2,522,782 

12,418,163 

5,562,696 


679,810 
4,055,317 
1,731,929 


57.88 
52,66 
31.15 


115.5 
99.S 
94.8 


Total 
(Average) 




', 




i 




Total 
(Average) 


14 


428,714 


215,607 


50.29 


153.1 




i 


Dnder ^0 


Under J6 
$6 to $12 

$12 i over 


5 
9 


140,498 
268,216 


81,658 
133,969 


58.11 
46.48 


176.9 
141.5 






1 




Total 
(Average) 


55 


3,082,152 


1,280,953 


41.56 


126.6 






Uo to 4eo 


Dnder $6 

$6 to $12 
$12 5: over 


25 
23 

7 


1,386,374 

1,319,132 

376,646 


536,642 
595,425 
150,888 


38.71 
44.99 
40.06 


117.9 
137.0 
122.0 






: 




i 




Total 
(Avorage) 


56 


6,607.089 


2,366,933 


35.82 


109.1 




; 


$80 to $180 


Dnder $6 

$6 to $12 
$12 8c over 


8 
30 
IS 


795,910 
5,633,935 
2,177,244 


261,530 

1,350,781 

754,622 


32.86 
57.17 

34.66 


100.1 
113.2 
105. S 














Total 
(Average) 


£4 


10,185,686 


2,803,563 


27.52 


83.8 




j 


llflo tc over 


Dnder $6 
(6 to $12 

$12 & over 


18 
6 


7,176,880 
3,006,806 


1,977,144 
826,419 


27.55 
27.47 


83.9 
83.6 




: 







Average $32.84 



•with average stock under $20, to $4.46 
for those with average stock of $40 
and over per $100 of total net sales. 
The same tendency which was ob- 
served to characterize stores with in- 
creasing inventories likewise applies 
to stores with increasing average 
stock in relation to sales. 

In the discussion of Table 20 it was 



observed, for the combined and for 
the individual years, that the amounts 
of inventory per $100 of total net 
sales decrease as the amounts of sell- 
ing expense per $100 of total net sales 
increase. When the stores are classi- 
fied by size, as in Tables 28 to 31, this 
tendency is less certain. 

From the foregoing discussion of 



68 



TABLE 30 

TOTAL NET SALES, INVENTORY, AND AMOUNT OF INVENTORY PER $100 OP TOTAL NET 
SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SELL- 
ING EXPENSE PER $100 OF TOTAL NET SALES, 1918 



Classified 

Total 
Net Salop 


Amount of 

Selling 

Expense 

per $100 of 

Total 

Net Sales 


Hijmbor 

of 
Stores 


Total 
Net Sales 


Total 
Inventory 


Inventory per $100 of Total Net Sales 


Amount 


Per Cent. 




Graphic 1 

1 Actual 
? 20 40 60 80 100 120 140 160 




Total 
(Average) 


149 


$14,322,667 


$5,804,340 


$40.53 


1 


100.0 








Under $6 
$6 to $12 

$12 & over 


30 

86 
J3 


1, 187, 535 
9,197,600 
3,937,332 


653,961 

3,650,841 

"1,499,538 


55.07 
39.69 
38.09 


135.9 
97.9 
94.0 


total 
(Average ) 


; 




; 




i 




Total 
(Average ) 


42 


1,256,795 


734, 523 


58,44 


144.2 








Chder $6 

$6 to $12 
$12 tc over 


16 
20 
6 


463,643 
601,649 
191,503 


266,299 
359,296 
106,928 


57.44 
59.72 
66.88 


141.7 

147.5 
140.5 


Under $40 














Total 
(Average) 


60 


' 3,501,019 


1,729,460 


49.40 


121.9 








Under $6 

$6 to $12 
$12 & over 


14 
34 

12 


723,692 

1,970,722 

606,405 


587,662 
954,790 
387,006 


53.55 
48.45 
47.99 


132.1 

119.5 
118.4 


$40 to *eo 










1 




Total 
(Average ) 


33 


3,860,130 


1,741,562 


45.12 

46.25 
42.31 


111.3 




i 


$80 to $180 


Under $6 

$6 to $12 
$12 & over 


23 
10 


2,749,060 
1,111,070 


1,271,499 
470,063 


114.1 
104.4 




; 








Total 
(Average ) 


14 


5,704,723 


1,598,795 


28.03 


69.2 


$180 & over 


Under $6 

$6 to $12 
$12 & over 


e 

5 


5,876,369 
1,826,354 


1,065,256 
533, 539 


27.46 
29.18 


67.8 
72.0 



Average $40.53 



the amounts of selling expense per 
$100 of total net sales and per $100 
of total net sales for the amount sold 
for each unit of inventory, for stores 
of different size and having different 
amounts of inventory per $100 of 
total net sales, it may be concluded: 
First, that for the combined and for 



the individual years, the amounts of 
selling expense per $100 of total net 
sales increase as the size of the stores 
increases. Second, that for a given 
store size, the amounts of selling ex- 
pense per $100 of total net sales do 
not show an unmistakable tendency 
either to increase or to decrease as 



69 



TABLE 31 

TOTAL NET SALES, INVENTORY, AND AMOUNT OF INVENTORY PER $100 OP TOTAL NET 
SALES, FOR 149 STORES CL-N.SSIFIED BY SIZE AND BY AMOUNT OF SELL- 
ING EXPENSE PER $100 OF TOTAL NET SALES, 1914 





Amount of 

Selling 

Exponae 

per SlOO of 

Total 

net Salea 


Himbar 

of 
Stores 


Total 
Hot Sales 


Total 

Inventory 


Inventory per $100 of Total Net Sales 


' Total 
llet Salea 


AmD'jnt 


Per Cent. 


(in 000' s) 


Graphic 

Actual 

3 20 40 60 80 100 120 140 




Total 
(Average) 


149 


$3,973,664 


$3,393,010 


$43.44 




100.0 






Total 


Under $6 

$6 to $12 
$12 & over 


25 
81 
43 


737,514 
4,575,293 

3,660,857 


396,328 
1,996,015 
1,505,157 


53.31 
43.63 
41.12 


123.9 

100.4 

94.7 


{Average ) 














Total 
(Average) 


71 


1,847,402 


1,039,383 


56.26 


129.5 






Onder $40 


Under $6 

$6 to $12 
$12 i over 


22 
35 

14 


532,297 
875,930 
379, 125 


342,413 
470,136 
226,834 


57.31 
53.67 
59.33 


133.1 

123.5 
137.7 














Total 
(Average) 


50 


2,777,177 


1,244,532 


44.81 


103.2 






$40 to $80 


Under $6 

$6 to $12 
§12 & over 


3 

31 

16 


145,217 

1,739,457 

892,503 


54,410 
792,971 
397,001 


37.47 
45.59 
44.48 


86.3 
104.9 
102.4 














Total 
(Average ) 


23 


2,654,275 


1,034,635 


40.86 


94.1 






$80 to $180 


Under $6 
$6 to $12 
$12 tc over 


13 
10 


1,583,905 
1,070,370 


638,000 
445,635 


40.23 
41.73 


92.7 

96.1 












Total 
(Average ) 


5 


1,694,310 


529,604 


31.25 


71.9 


$160 2c over 


Under $6 

$6 to $12 
$12 & over 


2 

3 


375,951 
1,313,959 


94,908 
434.696 


25.24 

32.96 


53.1 
75.9 



Average $43.44 



the amounts of inventory per $100 
of total net sales increase. Third, 
that the amounts of selling expense 
per $100 of total net sales for the 
amount sold for each $1 of inventory 
increase with the size of the inventory 
for stores of all sizes. Fourth, that 



the amounts of inventory per $100 
of total net sales decrease as the 
amounts of selling expense per $100 
of total net sales increase. 

The practical aspects of these con- 
clusions may be expressed as follows : 
If it is desired to decrease the amount 



70 



TABLE 32 

TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 

OF TOTAL EXPENSE, FOR 149 IDENTICAL STORES CLASSIFIED BY SIZE 

AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET 

SALES, 1919, 1918, AND 1914, COMBINED 



Classified 

Totel 
Net Sales 

(m ooo'b) 



Amoiiit of 

Inventory 

per 3100 of 

Total 

IJet Sales 



Etore- 
yeara 



Total 
Expense 



Total 
Selling 
Expense 



Selling Expense per JlOO of Total Expense 



Graphic 



20 40 60 80 100 120 

''I'll 



Total 
(Average) 



447 



J9, 450, 641 



}, 745, 629 



Total 
(Average ) 



Dtoder $20 
$20 to |40 
^0 to t60 
560 i over 



14 
168 
177 

88 



363,310 
5,606,522 
2,456,515 

624,496 



172,900 
3,086,085 
1,128,967 

555,877 



724,495 



298,231 



Dnder ^0 
320 to J40 
$40 to $60 
$60 £c over 



1 
18 
52 
56 



3,315 
104,594 
505,231 

511,357 



948 

5'{,036 

112,294 

130,953 



$40 to 



Total 
(Average) 

Under $20 
$20 to $40 
$40 to $60 
$60 & over 



1,690,810 



877,524 



6 
52 
62 
25 



78,735 
567,892 
923,878 
300,307 



29,622 
283,795 
426,579 
135,526 



Total 
(Average) 



2,809,487 



1,445,029 



$60 to $180 



Under $20 
$20 to $40 
$40 to $60 
$60 £; over 



5 
60 
40 

7 



101,792 
1,468,341 
1,026,522 

212,832 



53,599 
602,575 
499, 659 

89,596 



Total 
(Average ) 



4,025,849 



2,125,045 



$160 & over 



Under $20 
$20 to $40 
$40 to $60 
$60 & over 



2 

38 

3 



179,472 

3,645,495 

200,682 



88,931 

1,947,679 

68,435 



$50.22 



47.59 
53.18 

45.96 
43.16 



41.16 



26.61 
51.66 
36.79 

42.06 



46.41 



37.62 
48.27 
46.39 
45.13 



51.43 



52.46 
54.66 
48.67 
42.00 



52.79 



49.55 
53.43 
44.02 



100.0 



94.8 

105.9 

91.5 

65.9 



62.0 



57.0 
102,9 
73.3 
63.8 



92.4 

74.9 
96.1 
92.4 
89.9 



102.4 

104.5 

108.8 

96.9 

83.6 



105.1 

98.7 

106.4 
67.7 



Averaee $50.22 



71 



of selling expense when expressed in 
terms of sales, one method by which 
it may be done is to reduce the 
amount of inventory in relation to 
sales. How completely such a reduc- 
tion is within the power of the indi- 
vidual merchant it is difficult to say. 
The study by the Bureau of Business 
Research, however, leads to the con- 
clusion that in many instances the 
inventories in terms of sales are 
unnecessarily large, as a result of 
unscientific purchasing or through 
failure to secure sales. In this con- 
nection the fifth volume of the 
Bureau's study of Costs, Merchandis- 
ing Practices, Advertising and Sales 
in the Retail Distrihutian of Clothing, 
which has to do with purchases and 
turnover, may be consulted for a 
more detailed treatment of this par- 
ticular phase of the subject. 

Selling expense may also be ex- 
pressed in terms of total operating 
expense. Out of every $100 of total 
expense, $50.22, on the average for 
the three years, for the 149 identical 
stores under consideration, was ex- 
pended for selling as the term is used 
in this volume. For the stores with 
sales under $40,000 the amount was 
$41.16; for those with sales of $40,- 
000 to $80,000 it was $46.41; for 
those with sales of $80,000 to $180,000 
it was $51.43; and for those with 
sales of $180,000 and over it was 
$52.79. That is, as the stores increase 
in size, selling expense becomes an 
increasing proportion of total operat- 
ing expense. For the group of small- 
est stores, the amount was 82.0 per 
cent., and for th(; group of largest 



stores, 105.1 per cent, of the average 
for all stores. 

Do the amounts of selling expense 
per $100 of total expense tend to 
become larger or smaller proportion- 
ately for these stores as the amounts 
of inventory in relation to sales in- 
crease? When the stores are con- 
sidered as a whole, Table 32 shows 
that the amounts of selling expense 
per $100 of total operating expense 
decrease as inventories in terms of 
sales increase. Moreover, this condi- 
tion generally holds for stores when 
classified by size. If the amounts of 
selling expense per $100 of total ex- 
pense are expressed in terms of the 
amount sold per $1 of inventory, the 
direction of change from inventory- 
group to inventory-group is unmis- 
takable. While it cost $47.59 on the 
average during the three years for 
every $100 of total expense for stores 
having inventories under $20 per 
$100 of total net sales, it cost but 
$8.33 when the selling expense, so 
expressed, is determined for the 
amount sold per $1 of inventory. 
From this minimum the amounts 
rapidly increase to $30.18 for stores 
with inventories of $60 and over per 
$100 of total net sales. 

This condition holds not only for 
stores unclassified as to size, but is 
also true when they are classified in 
the customary groups according to 
sales. Perhaps the relations between 
selling expense and total expense, in 
stores having different amounts of 
inventory in relation to sales, will be 
understood more readily if the results 
of the analysis are put as follows: 



72 



TABLE 33 

TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OP 

TOTAL EXPENSE, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF INVENTORY PER $100 OF TOTAL NET SAliES, 1919 



Classified 

Total 
Net Sales 


Amount of 

Inventory 

per SlOO of 

Total 

Net Sales 


Ilwibor 

of 
Stores 


Total 
Expense 


Totsvl 
Selling 

Expense 


Selling Expense per $100 of Total iixpenae 


Amount 


Per Cent. 


(In OOO's) 


Graphic . ^ , 
Actual 

3 ?.0 40 60 eo 100 120 




Total 
(Avor-.ce ) 


149 


$4,160,820 


$2,135,072 


$51.22 




100.0 








Under 520 
$20 to $40 
$40 to $60 
$60 & over 


7 
83 
51 

8 


209,266 

3,117,375 

751,639 

90,540 


105,711 

1,649,518 

345,965 

33,878 


50.52 
52.91 
46.03 
37.42 


98.5 

103.3 

89.9 

73.1 


Total 
(Average ) 




! 




i 




Total 
(Average) 


14 


76,2:.7 


29,018 


38.06 


74.3 


Under $40 


Under $20 
$20 to $40 
$40 to $60 
*;60 It over 


2 
8 
4 


14,142 
47, 188 
14, 907 


6,275 

15,797 

6,946 


44.37 
33.48 
46.60 


86.5 
65.4 
91.0 








1 




Total 
(i.veruge) 


55 


536, 176 


233,843 


43.61 


85.1 




^^^""""^^ 




Under $20 
$20 to $40 
$40 to $60 
$60 J: over 


2 
22 

28 
S 


16,881 
208,870 

276,474 
33, 951 


7,320 

94,720 

122,592 

9,211 


43.36 
45.35 
44.34 
27.13 


^^^^^ 


84.7 
88.5 
86.5 
53.0 


$40 to 580 


i 












Total 
(Avers-ge) 


56 


1,326,311 


700,800 


52.84 


103.2 








Under $20 
$20 to $40 
$40 to $60 
$60 i-. over 


4 
37 
14 

1 


67,086 
860,490 
357,053 

41,682 


34,307 
465, 124 
183, 648 

17,721 


51.14 
54.05 
51.43 
42.51 


99.0 
105.5 
100.4 

33.0 


$80 to $180 










1 








Total 
(Average ) 


24 


2,230,096 


1,171,411 


62.53 


102.5 




! 




Under $20 
$20 to $40 
$40 to $60 
$50 & over 


1 
22 

1 


125,299 

2,033,873 

70,924 


64,084 

1,083,399 

23,928 


51.14 
53.27 
33.74 


99.8 

104.0 

65.9 


vl30 & over 


; 







Average $51.22 



73 



TABLE 34 

TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OF 

TOTAL EXPENSE, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF INVENTORY PER $100 OF TOTAL NET SALES, 1918 



Claselfled 

Total 
Ket sales 


Airount of 

Inventory 

per $100 of 

Total 

Net Sales 


Number 

of 
Stores 


Total 
Expense 


Total 
Selling 
Expense 


Selling Expense per $100 of Total Expense 


Amoimt 


Per Cent. 


(In coo's) 


'^^^P^^'^ 1 Actnal 
CO 40 60 80 100 12o' 




Total 
(Average ) 


149 


ti, 163, 345 


$1,573,249 


$49.75 




100.0 








Under $20 
$20 to $40 
$40 to $60 
$60 k over 


3 
46 
60 
40 


81,440 

1,728,776 

950,082 

405,047 


32,117 
937,441 
427,462 
176,229 


39.44 
54.23 
44.99 
43.T8 


79.3 

109.0 

90.5 

87.9 


Total 
(Average) 








1 








Total 
(Average) 


42 


248,315 


101,621 


40.92 


82.3 




j 


Under $40 


Under $20 
$20 to $40 
$40 to $60 
$60 & over 


6 
IS 
23 


52,127 

61,880 

154,308 


17,520 
27,892 
66,209 


54.53 
34.06 
41.85 


109.7 
68.5 
84.2 












Total 
(Average) 


60 


719,568 


331,958 


46.13 


92.8 




— 


$40 to $80 


Under $20 
$20 to $40 
$40 to $60 
560 li over 


2 

15 
29 
14 


27,267 
187,585 
329, 9e0 
174,756 


7,270 

87,097 

144,695 

82,898 


26.66 
51.76 
43.85 
47.44 


53.6 

104.1 

88.2 

95.4 




1 




^^^1 




i 




Total 
(Aver&ge) 


33 


862,014 


422,051 


48.96 


98.5 




j 


$80 to $180 


Under $20 
$20 to $40 
$40 to $60 
$60 & over 


14 

16 

3 


359,747 

408,284 

93,983 


194,559 

190,370 

37,122 


54.08 
46.63 
39.50 


108.7 
95.8 
79.4 
















Total 
(Average) 


14 


1,333,448 


717,619 


53.82 


108.2 








Ondep $20 
$20 to $40 
$40 to $60 
$60 & over 


1 

11 

2 


54,173 

1,149,317 

129,958 


24,847 

628,265 

64,507 


45.87 
54.66 
49.64 


92.2 

109.9 

99.9 


$180 & over 













Average £49.73 



74 



The selling expense per $100 of total 
expense for the amount sold per $1 
of inventory is $8.33, when the in- 
ventory per $100 of total net sales is 
less than $20. When the inventory 
is between $20 and $40 the amount is 
$15.96, and when the inventory is 
$60 and over the amount increases to 
$30.18. 

Tables 32 to 35, inclusive, show 
that selling expense becomes a pro- 
portionately larger part of total ex- 
pense as stores increase in size. On 
the other hand, it is large stores that 
have relatively small inventories in 
terms of sales. Accordingly, when 
the stores are classified by the 
amounts of inventory in relation to 
sales, the amounts of selling expense 
per $100 of total expense decrease as 
is shown in the total sections of these 
tables. The large stores seem to be 
operating at a disadvantage so far as 
this proportion is concerned. On the 
other hand, when the selling expense 
per $100 of total expense is related 
to the amounts sold per $1 of inven- 
tory, an inverse condition obtains. 
The selling expense of the stores 
having the small inventories — the 
large stores — rather than being rela- 
tively large is relatively small, the 
amount for the stores with inventories 
averaging less than $20 per $100 of 
total net sales being only slightly 
more than one-fourth as large as the 
amount for those stores with inven- 
tories of $60 and over. After all, it 
is the amount of sales which produces 
profits, and which suggests, in this 
connection, the wisdom of low in- 
ventories. 



C. — Yearly Amounts of Selling Ex- 
pense per $100 of Total Net Sales 
and per $100 of Total Expense, 
for Stores Classified by Rates of 
Stock Turnover and by Size, 
1919. 
The records of 282 stores for the 
year 1919 are available for the study 
of the relation of selling expense to 
total net sales and to total expense 
according to the rates of stock turn- 
over which the stores had in this year. 
The annual stock turnover rates are 
computed by dividing the total cost 
of merchandise sold during the year 
by the average of inventories taken 
at cost at the close of the years 1918 
and 1919. "Cost of merchandise 
sold" is determined by adding to the 
1918 inventory the purchases, plus 
the freight and cartage, less returns 
to manufacturers, 1919, and deduct- 
ing therefrom the 1919 inventory. 

In Table 36 the 282 stores, without 
respect to size, are classified accord- 
ing to the annual rates of stock turn- 
over. Nine of the stores turned their 
stock on an average less than once, 
136 between one and two times, 100 
between two and three times, 23 be- 
tween three and four times, and 14, 
four times and more. The average 
number of stock turns for the stores 
as a whole was 2.2. This figure closely 
agrees with that for a somewhat larger 
number of stores, the stock turns of 
which are discussed in Volume V * 
of the Bureau's study on Costs, Mer- 
chandising Practices, Advertising and 
Sales in the Eetail Distributio-n of 
Clothing. 

* pp. 464 ff. 



75 



TABLE 35 

TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OP 

TOTAL EXPENSE, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF INVENTORY PER $100 OF TOTAL NET SALES, 1914 



Classified 

Total 
Net Sales 
(In OOO's) 



Total 
(Average) 



Under $40 



|40 to 



to $130 



$180 8t over 



Amount of 

Inventory 

per JlOO of 

Total 

net Sales 



Total 
(Average ) 



Under $20 
$20 to $40 
$40 to $60 
$60 3c over 



Total 
(Average) 



Under $20 
:^20 to $40 
$40 to $50 
$60 & over 



Humber 

of 
Stores 



Total 
(Average ) 



Under $20 
$20 to $40 
$40 to $60 
$60 & over 



Total 
(Average ) 



Under $20 
$20 to $40 
$40 to $60 
$60 4: over 



Total 
(Average ) 



Under $20 
$20 to $40 
$40 to $60 
$60 li over 



Total 
Expense 



$2,118,476 

72,604 
960,171 
754,792 
330,909 



399,943 



3,313 

58,325 

176,163 

162,142 



635,066 



34,585 
191,437 
317,444 

91,600 



621,152 



34,706 
248,104 
251,185 

77,167 



462,305 



462,305 



Total 
Selling 
Expense 



Selling Expense per '^100 of Total Expense 



$1,037,508 

35,072 
601,126 
355,540 
145,770 



167,592 



948 
30,241 
68,605 
67,798 



311,723 



Graphic 
20 40 60 80 100 120 



15,032 

91,978 

161,294 

43,419 



322,178 



19,092 
143,692 
125,601 

34,553 



256,015 



236,015 



$49.97 

48.31 
52.19 
47.10 
44.05 



41.90 



23.61 
51.85 
38.94 
41.81 



49.09 



43.46 
48.05 
50.31 
47.40 



51.87 



55.01 
57.59 
48.10 
44.73 



100.0 



93.7 

106.6 

96.2 

90.0 



85.6 

53.4 

105.9 

79.5 

35.4 



93.1 

103.8 

96.8 



105.9 



112.3 

117.6 

93.8 

91.4 



Average $48.97 



76 



The average selling expense per 
$100 of total net sales for these stores 
is $10.16. For those with less than 
one turn it is $7.66 and from this 
amount as a minimum the selling 
expense increases for each group of 
stores classified by rates at which 
stock was turned until the stores with 
between three and four turns are en- 
countered. The average for this 
group is $11.47. For those having 
four or more turns, the corresponding 
amount is $8.64. A casual inspection 
of this table would seem to indicate 
that the stores having low turnover 
rates are in an advantageous position 
so far as selling expense is concerned. 
This is not the case, however, when 
the number of turns made is taken 
into consideration. This latter point 
of view is developed in the column 
of the table with the caption, * ' Selling 
expense per $100 of total net sales 
per stock turnover. ' ' * The average 

* The method by which this unit is com- 
puted is explained on page 4, item 19. 



amount of selling expense so ex- 
pressed for the entire group is $4.62. 
For the stores which turned their 
stock less than once it is $10.21, and 
from this figure as a maximum the 
amounts rapidly decrease to $1.73 for 
those stores having four or more 
annual turns. 

These decreasing amounts of selling 
expense in relation to sales per stock 
turnover immediately suggest the 
saving which is possible to stores by 
increasing the rates at which they 
turn their stock. After all, the 
amounts of selling expense in terms 
of sales alone do not tell a complete 
story. It is only when such expense 
is expressed on a unit basis that the 
true comparative significance of the 
costs for stores operating under dif- 
ferent conditions is revealed. 

Table 36, moreover, needs to be 
considered in connection with the 
foregoing tables in which the size of 
stores is considered from the point of 
view of selling expense. It has been 



TABLE 36 

AMOUNT OF SELLING EXPENSE PER $100 OP TOTAL NET SALES PER STOCK TURNOVER, 
FOR STORES CLASSIFIED BY RATES OF STOCK TURNOVER, 1919 



Rates of 

Stock 
Turnover 



Total 
(Average ) 



Onder 1 

1 to 2 

2 to 9 
9 to « 

4 h over 



Nvanber 

of 
Stores 



9 

136 

100 

23 

14 



Selling Expense per $100 of 
Total Net Sales 



fer Cent. 



Qraphlo 
20 40 60 80 100 120 



♦10.16 



7.66 
9.60 
10.60 
11.47 
8.64 



100.0 



75.4 

94. S 

104.3 

112.9 

85.0 



Average flO.ie 



Selling Expense per $100 of Total Net Sales 
per Stock Turnover 



Graphic 
20 40 60 80 100 120 140 



$4.62 

10.21 
6.40 
4.24 
3.13 
1.79 




ICO.O 



221.0' 

158.5 

91.3 

67.7 

57.4 



Average $4.62 

Pull length not shown 



77 



TABLE 37 

TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 

OF TOTAL NET SALES, FOR STORES CLASSIFIED BY RATES OP 

STOCK TURNOVER AND BY SIZE, 1919 





Classified 

Total 
Hot Sales 
(m COO'e) 


Number 

of 
Stores 


Total 
Net Sales 


Total 
Selling 
Expense 


Selling Expense per $100 of To\,al Hot Sales 


Ratea of 

Stock 
Tvimover 


Amoiuit 


Per Cent. 




Graphic ^,^,^^ 
D 20 40 60 80 100 120 140 




Total 
(Average ) 


282 


$35,563,014 


$3,611,688 


$10.16 




100.0 




IHHaB^ 


Total 
(Average) 


Under $40 
$40 to eso 

fcO to Jl80 
$180 & over 


33 

106 

98 

45 


1,012,152 

6,020,400 

11,667,072 

16,863,390 


60,684 

448,806 

1,185,724 

1,916,474 


6.00 
7.45 
10.16 
11.57 


59.1 
73.3 
100,0 
111.9 




; 




^1^^^^ 




Total 
(Average) 


' 9 


601,109 


46,063 


7.66 


75.4 






Dndor 1 


tJnder $40 
$40 to 580 

fee to Jieo 

$180 k over 


2 
4 
3 


64,787 
226,698 
309,024 


4,850 
15,794 
25,419 


7.49 
6.97 
8.21 


75.7 
68.6 
80.8 




i 
1 




Total 
(Average) 


136 


11,010,775 


1,057,084 


9.50 


94. S 




■ 


1 to 2 


Under J40 
$40 to $80 
$80 to $180 

$180 & over 


19 

65 

45 

6 


570,712 
3,571,041 
5,487,136 

1,391,385 


36, 307 
269,785 
591,407 
159,684 


6.35 
7.55 
10.78 
11.55 


62.6 

74.5 

106.1 

113.7 












Total 
(Average ) 


100 


15,987,018 


1,694,631 


10.60 


104.3 




i 


2 to 3 


Under C40 
$40 to 580 
$80 to $130 

$180 J; over 


12 

26 
40 
22 


376,653 
1,561,875 
4,663,355 
9,385,135 


19,527 

120,377 

452,493 

1,102,234 


5.18 

7.71 

9.70 

11.74 


51. 

75.9 

95.5 

115.6 
















Total 
(Average) 


23 


4,443,953 


509,713 


11.47 


112.9 






3 to 4 


Under $40 
$40 to $60 
$80 to $180 

$180 & over 


8 
5 

10 


510,510 

617,557 

3,315,886 


35,529 
75,426 
398,758 


6.96 
12.21 
12.03 


68. S 
120.2 

lie. 4 












Total 
(Average) 


14 


3,520,159 


304, 197 


8.64 


85.0 






4 tc over 


Under $40 
$40 to $80 
$80 to $180 

$180 i over 


2 
5 

7 


150,276 

589, 400 

2,780,463 


7,320 

40,979 

255,898 


4.87 
6.95 
9.20 


47.9 
68.4 
90.6 





^^^^" 1 



Average $10.16 



78 



shown repeatedly that the selling ex- 
pense of stores increases directly with 
their size. When the additional fac- 
tor of turnover is considered, however, 
it is precisely the stores which are 
large that have relatively high turn- 
over rates and, accordingly, it is these 
stores which have low selling expense 
per $100 of total net sales per stock 
turnover. From this point of view, 
the large stores operate at an advan- 
tage as compared to the small stores. 

The relations of size of store and 
rate of stock turnover to selling ex- 
pense per $100 of total net sales are 
developed in Table 37. The total 
section of this table shows for 282 
stores classified by size the amounts 
of selling expense per $100 of total 
net sales. The comparison reaffirms 
the conclusion that the amounts of 
selling expense increase as the stores 
increase in size. 

When stores are classified by size 
for the different classified rates of 
turnover, in each group the amounts 
of selling expense per $100 of total 
net sales are shown to increase, with 
one exception, with the size of the 
store. The consistency of the increase 
from store-group to store-group is in- 
dicated by the graphic parts of the 
table, while the average amount for 
each group is given in dollars and 
cents. 

Another way of expressing the 
amounts of selling expense of these 
stores, according to size and rates of 
stock turnover, is in terms of total 
expense. This is done in Table 38. 
From an analysis of this table it may 
be concluded that the amounts of 



selling expense per $100 of total ex- 
pense increase for all the stores, and 
for those having classified rates of 
stock turnover, as the amounts of 
sales increase. How consistent this 
increase is for each group of stores 
classified by rates of stock turnover 
is shown graphically by the lengths 
of the bars which are drawn propor- 
tional to the amounts. 

The significance of Tables 36 to 38, 
inclusive, may be summarized as fol- 
lows: First, the amounts of selling 
expense per $100 of total net sales 
increase as the rates of stock turnover 
increase. This condition holds for 
every group except for the one having 
four or more turns per year. Second, 
the amounts of selling expense per 
$100 of total net sales per stock turn- 
over decrease as the number of stock 
turns increase. Third, the amounts 
of selling expense per $100 of total 
net sales increase for each classified 
rate of stock turnover as the stores 
increase in size. Fourth, the amounts 
of selling expense per $100 of total 
expense increase as stores increase in 
size for those having classified rates 
of stock turnover. 

The relation of selling expense to 
sales and to stock turnover for the 
same 282 stores may be further illus- 
trated by classifying the stores by 
size and by the amounts of inventory 
on hand at the close of the year 1919. 
This is done in Table 39. The 
amounts of selling expense for stores 
of different size and with different 
amounts of inventory are expressed 
first, in terms of total net sales, and 
second, in terms of total net sales per 



79 



TABLE 38 

TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 

OF TOTAL EXPENSE, FOR STORES CLASSIFIED BY RATES OF 

STOCK TURNOVER AND BY SIZE, 1919 



Rates of 
Stock 
Turnover 


Classified 

Total 
Het Sales 
(In OOO'b) 


Nujnber 

of 
Stores 


Total 
Brpanse 


Total 
Selling 
Expense 


Selling Expense per $100 of Total Expense 


AjnouBt 


Per Cent. 




<^»P'^» Actual 
> 20 40 60 80 100 120 140 




Total 
(Average) 


282 


$7,409,502 


$5,611,688 


$48.74 

35.10 
41»79 
51.66 
49.55 

49.79 


i 


100.0 




« 


TotEl 
(ATerane) 


raider |40 
$40 to $80 
$80 to $180 

$180 & over 


55 

106 

98 

45 


172,887 
1,073,679 
2,295,137 
5,867,599 


60,684 

448,806 

V 185, 724 

1,916,474 


72.0 
85.7 
106.0 
101.7 














Total 
(Average) 


9 


92,517 


46,063 


102.2 








raider $40 
$40 to $80 
$80 to $180 

$180 fc over 


2 

4 
5 


12,529 
39, 626 
40,362 


4,850 
15,794 
25,419 


38.71 
39.86 
62.98 


79.4 

81.8 

129.e 


Vaier 1 


i 




i 




1 




Total 
(Average) 


136 


2,200,164 


1,057,084 


48.05 


98.6 








raider $40 
$40 to $80 
$80 to $180 

$180 Sc over 


19 

66 

45 

6 


97,094 

648,685 

1,147,039 

307,346 


36,307 
269,786 
591,407 
159,584 


37.39 
41.59 
51.56 
51.92 


76.7 
85. 3 

los.e 

106.5 


1 to 2 






! 












Total 
(Average) 


100 


3,461,675 


1, 694, 631 


48.95 

30.87 
42.48 
50.34 
49.74 


100.4 






2 to 3 


raider $40 
$40 to $80 
$80 to $180 

$180 & over 


12 
26 
40 
22 


63,264 

283,383 

898,948 

2,216,078 


19,527 

120,377 

452,493 

1,102,234 


63.3 
87.2 
10S.5 
102.1 




; 




) 








Total 
(Average ) 


23 


957,575 


509,713 


53.23 


109.2 




1 

> 


5 to 4 


raider $40 
$40 to $80 
$80 to $180 

$180 & over 


8 
5 
10 


85,304 
121,706 
750,565 


36,529 
75,426 

398,758 


41.65 
61.97 
53.13 


85.5 
127.1 
109.0 












1 
1 




Total 
(Average) 


14 


697,573 


304, 197 


43.61 


69.5 




1 


4 & over 


raider $40 
$40 to $80 
v80 to $180 

$180 l^ over 


2 
5 
7 


16,681 
87,082 
593, 610 


7,320 

40,979 

255,698 


43.36 
47.06 
4o.n 


89.0 
96.6 
88.4 




^^^^^1 




I 




1 



Average $48.74 



80 



stock turnover. Table 39 merits care- 
ful study. It shows: First, that the 
amounts of selling expense per $100 
of total net sales increase as stores 
increase in size. Second, that these 
amounts for stores of a given size, 
on the whole, increase as the size of 
the inventory per $100 of total net 
sales increases. Third, that the 
amounts of selling expense per $100 
of total net sales per stock turnover 
for stores of different size increase 
according to the size of store, for 
those stores with sales of less than 



$180,000, while for those with sales 
in excess of this amount, they de- 
crease. Fourth, for each group of 
stores, when classified by size, the 
selling expenses per $100 of total net 
sales per stock turnover increase as 
the amounts of inventory per $100 
of total net sales increase. 

Certain practical conclusions seem 
to follow from the foregoing summary 
statement. To illustrate: There are 
106 stores with annual sales between 
$40,000 and $80,000. For these stores 
it cost, on the average, $7.45 in selling 



TABLE 39 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER STOCK TURNOVER, 

FOR STORES CLASSIFIED BY SIZE OF STORE AND BY AMOUNT OP 

INVENTORY PER $100 OF TOTAL NET SALES, 1919 





Amount of 
luioiitcry 
per tioo of 

TDt«l 

lot Salea 


IhJinbor 

of 
Stores 


Selling Expense per $100 of 
Total Net Sales 


Selling Expense per »100 of Total Vet 
Sales per Stock Turnover 


<tn OOO't) 


Ano'int 


Per Cent. 


Insnt 


Par Cent. 


Graphic 

Actual 

5 20 40 60 60 100 120 


CrapMa 

Actual 

5 20 40 «0 60 100 120 140 160 180 200 




Total 
(Average) 


282 


$10.16 






100.0 


$4.62 


! 


100.0 


Total 


Onder |20 
$20 to %*0 
Uo k OTor 


17 
155 
112 


9.03 
10.79 
6.84 




88.9 
106.2 
67.0 


2,05 
4.50 

6.51 


1 




(ATsragt ) 




^.4 
134.6 


















Total 
(Avorace) 


SJ 


6.00 


1 


59.1 


4.00 


86.6 




1 

i 


Cnlar UO 


Dndor $20 
$S0 to $40 
540 k over 


10 
23 


5.72 
6. IS 


56. 3 
60. S 


2.72 
4.72 


S8.9 
102.2 




j 




Total 
(Average) 


106 


7. 45 






73.3 


4.14 


89.6 


%*o to Oso 


Under $20 
$20 to $40 
$40 i over 


S 
4S 

58 


5.85 

7.13 
7.84 


57.6 
70.2 
77.2 


1.39 
3.24 

5.23 


30.1 
70.1 
113.2 








Total 
(Average) 


98 


10.16 


100.0 


5.55 


115.8 








^^^^ 


tSO to Jl60 


Unijer $20 
$20 to $40 
$40 i over 


S 

63 
30 


8.82 
10.28 
10.10 


86.8 
101.2 
99,4 


2.10 
4.67 
6.75 


45.5 
101.1 
145.7 














1 

i 




Total 
(Average) 


45 


11.36 


1 


111.8 


4.05 


67.9 






■^^■" 


|180 i ovor 


Under $20 
$20 to $40 
$40 k over 


9 
35 

1 


9.27 
11.95 
10.32 






91.2 
117.4 
101.6 


2.05 
4.59 


44.5 
£9.4 














1 


8.60 











1 



Averase $10,16 



81 



expense to sell $100 worth of goods. 
However, when the amount of selling 
expense in terms of sales is calculated 
per stock turnover, this amount be- 
comes $4.14, or is reduced 44 per 
cent. For the three stores in this 
group the inventories of which, at the 
close of 1919, were less than $20 per 
$100 of total net sales, the amount 
of selling expense for each $100 
worth of goods sold is $5.85. For 
each turnover, however, the selling 



expense is $1.39. The amounts of 
selling expense in terms of sales in- 
crease as the size of the inventories 
per $100 of total net sales increases. 
They increase much more rapidly, 
however, with the size of the inven- 
tories when they are measured in 
terms of a unit of stock turn. The 
minimum amount in terms of sales 
is $5.85; the maximum is $7.84, In 
terms of stock turnover, the minimum 
is $1.39, and the maximum, $5.23. 



TABLE 40 



COST OF MERCHANDISE SOLD, AVERAGE INVENTORY, AND AVERAGE ANNUAL STOCK 

TURNOVER, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF 

INVENTORY PER $100 OF TOTAL NET SALES, 1919 



Classified 

Totel 
Met Sales 


Amount of 

Inventorv 

per $100 of 

Total 
Met Sales 


Nunber 

of 
Stores 


Cost of 

Uerch&ndlse 

Sold 


Average 

Inventory, 
1918 & 1919 


Average Annual Stock T'jmover 


Rats 


Per Cent. 


(in OOO's) 


Graphic 
) 20 40 60 80 100 120 140 160 180 200 220 


Actual 




Total 
(Avci-;;e) 


232 


$23,853,253 


$10,940,487 


2.2 




lOO.O 






Total 
(Average) 


Undor S20 
J20 to $40 
^0 & over 


17 
155 
112 


2,732,262 
15,790,517 
5,280,579 


625,294 
6,633,672 
5,675,521 


4.4 
2.4 
1.4 


200.0 
109,1 
63.6 






i 




Total 
(Av'jrjge) 


5J 


71:;, 166 


472,946 


1.5 


68.2 


CraJer $40 


Under JBO 
JSO to 540 
C40 & over 


10 
23 


224,546 
438,620 


107,173 
565,775 


2.1 
1.3 


95.5 
59.1 








Total 
(Avora,39) 


106 


4,188,968 


2,333,029 


1.8 


81. 3 




i 




Under J20 
J20 to J40 
$40 3c ovor 


3 
45 
53 


173,553 
1,851,829 
2,163,586 


40,898 

853,625 

1,488,508 


4.3 
2.2 
1.5 


190,9 
100.0 
68.2 


540 to Sso 










Total 
(Average) 


98 


7,827,891 


4,056,088 


1.9 




36.4 








Under CSO 
02O to »40 
$40 i over 


5 
6J 
30 


367,666 
4,967,525 
2,493,700 


83,169 
2,259,616 
1,708,305 


4.2 

2.2 
1.5 


190.9 
100.0 
63.2 


}80 to .ISO 






1 




Total 
(Avcra-y:) 


45 


11,1^:,, 233 


4,023,424 


2.8 


127.3 








Untfer ''.^O 
$20 to .J40 
"40 4 ovur 


9 

35 
1 


2,241,043 

8,746,717 

130,473 


496,227 

5,418,260 

U3.937 


4.5 
2.5 
l.T 




204.5 
118.2 
64.5 


$180 4 over 






1 
1 . , — —, ___ 



82 



Large inventories relative to sales are 
clearly a disadvantage when con- 
sidered from the point of view of 
selling expense in relation to sales and 
in relation to sales for each stock turn- 
over. Strenuous measures should be 
taken by merchants to reduce their 



inventories in relation to their sales. 
Tables 40 and 41 contain, respec- 
tively, the average annual stock turns 
for the stores shown in Table 39, and 
the number of stores having stock 
turns above and below the averages 
for the respective groups. These 



TABLE 41 

NUMBER OP STORES HAVING SPECIFIED RATES OF STOCTK TURNOV^ER, CLASSIFrEr> BY 
SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1919 



Classified 
Total 


Amount of 

Inventory 

per $100 of 

Total 

Net Sales 


Average 

Annial 

Stock 

Turnover 


Number of Stores Having Specified Rates of Stoclc Turnover 


Net Salea 
(In 000' 6 ) 


Total 


Under 1 


1 to 2 


2 to 3 


5 to 4 


4 8: over 




Total 
(Average) 


2.2 


282 


9 


136 


100 


23 


14 


Total 
(Average ) 


Obder $$0 
$20 to $40 

$40 tc over 


4.4 

2.4 

1.4 


17 
153 
112 


2 

7 


42 
94 


90 
10 


6 

IS 

1 


IX 
S 




Total 
(Average) 


1.5 


33 


2 


19 


12 


_ 


_ 


Dhder §40 


tfader $20 
$20 to $40 
$40 & over 


2.1 
1.3 


10 
23 


2 


2 
17 


8 
4 


- 






Total 
(Average ) 


1.8 


106 


4 


66 


26 


8 


2 


|40 to $80 


Onder $20 
$20 to $40 
$40 & over 


4.2 
2.2 
l.S 


3 
45 
58 


1 
5 


17 
49 


21 
5 


1 
6 

1 


2 




Total 
(Average ) 


1.9 


93 


3 


45 


40 


5 


5 


#80 to $180 


Uoder $20 
$20 to $40 
$40 & over 


4.2 
2.2 
1.5 


5 
63 
30 


X 
2 


13 
27 


39 

1 


2 
3 


3 
2 




Total 
(Average ) 


2.8 


45 


. 


6 


22 


10 


7 


$180 & over 


Under $20 
$20 to $40 
$40 k over 


4.5 
2.6 
1.2 


9 

35 

1 


^ 


5 

1 


22 


3 

7 


6 



83 



tables are of interest in themselves, 
but are included primarily at this 
place to supplement Table 39 and to 
show how nearly the respective aver- 
ages, used in calculating the selling 
expense per $100 of total net sales 
for each stock turnover, are charac- 
teristic of the conditions in the vari- 
ous stores under consideration. 

Table 42 is identical with Table 39 
except in the order in which the data 
are classified. In this table the 
amounts of selling expense are shown 



both in terms of sales and in terms 
of sales per stock turn for stores with 
different amounts of inventory. For 
all the stores unclassified by inven- 
tories, selling expenses increase as the 
stores increase in size. This condition 
holds, moreover, when the stores are 
classified by the amounts of inventory 
on hand at the close of 1919. The 
nature of the changes in the amounts 
from group to group is shown in the 
graphic part of the table. 



TABLE 42 

AMOUNT OP SELLING EXPENSE PER $100 OF TOTAL NET SALES PER STOCK TURNOVER, 

FOB STORES CLASSIFIED BY AMOUNT OF INVENTORY PER $100 OP 

TOTAL NET SALES AND BY SIZE, 1919 





Classified 

Total 
Met Salee 
(In OOO'e) 


Hmber 

of 

stores 


Sftlling Kxpenae per ^00 of 
TBtel net 8*lea 


Selling Bxpense 
per 


per $100 of Total Wet Sales 
stock TumoTor 


Ir.vo itory 

per vlOO of 

Total 

Net SdoB 


Aneunt 


tar Cent. 


Amenmt 
< 


Per Cent. 


Crapble 
3 20 40 60 80 100 120 


Aotual 


) 20 40 60 


Orophlo 
eO 100 120 140 160 ISO £00 


Actual 




Total 
f Average ) 


282 


510.16 




100.0 


$4.62 




hv 


100.0 










Under $40 
(40 to $80 

880 to JISO 
SlBO 4 over 


106 
98 
45 


6.00 
7.45 
10.16 
11.36 


5S.1 
73.3 
100.0 
HI. 8 


4.00 
4.14 

s.ss 

4. OS 


86.5 


Totnl 
(Averago) 






















mmaim 






Total 
(Averace ) 


17 


9. OS 


88.9 


2.05 










Under #20 


Dnaor J40 
^0 to J80 
£80 to $180 

SIBO k over 


S 

s 

9 


5.85 
8.82 
9.27 


57.6 
86.8 
91.2 


1.39 
2.10 

2.06 


30.1 






44.6 










Total 
(Average) 


15S 


10.79 


106.2 


4.50 






■■■'" 







tso to Uo 


Under S40 
^40 to {80 
SSO to $180 

tieo & over 


10 
45 
63 
S5 


5.72 
7.13 
10.23 
11.03 


56.3 
70.2 
101.2 
117.4 


2.72 
3.24 
4.67 
4.59 


S8.9 
70.1 




1 






99.4 




1 

1 










Total 
(Average) 


112 


e.84 


87.0 


6.31 


^M^^ 






I.—. 1 










Under $40 
$40 to $80 
$80 to $180 

$1S0 t over 


2i 
58 
»0 

1 


6.13 
7.64 
10.10 
10.33 


60.3 
77.2 
99.4 
101.6 


4.72 

5.23 
6.73 

e.eo 




I 




»40 k onr 




















186.1 




'• 





Avorago t^O.lG 



Avoro^o $4*62 



D- — Summary. 

(1). The amounts of selling ex- 
pense per $100 of total net 
sales and also per $100 of 
total net sales per amount 
sold per $1 of inventory de- 
creased between 1914 and 

1918, and between 1918 and 

1919. This is true for all 
stores and also for the stores 
classified by size and by 
amount of inventory per $100 
of total net sales. 

(2). Inventories in terms of sales 
decreased between 1914 and 
1918, and 1918 and 1919. 

(3) . As the inventories in terms of 
sales increase, the amounts of 
selling expense per $100 of 
total net sales on the whole 
decrease. For stores of a 
given size, they increase. In 
terms of the amount sold per 
$1 of inventory and per stock 
turnover the amounjts in- 
crease for all stores and also 
for stores of a given size. 

(4). As the size of the stores in- 
creases, the selling expenses 
per $100 of total net sales per 
amount sold per $1 of inven- 
tory generally increase for 
stores with sales under $180,- 
000 and then decrease for the 
stores with sales of $180,000 
and over. 

(5). The proportions of total ex- 
pense attributable to selling 
increase as the size of the 
stores increases, and decrease 



as the inventories in terms of 
sales increase. 

(6). For stores with a given rate 
of stock turnover, the amounts 
of selling expense, in terms of 
sales alone or of sales and 
stock turnover, increase as the 
stores increase in size. 

(7). For stores with a given rate 
of stock turnover, the amounts 
of selling expense in terms of 
total expense, alone or com- 
bined with the rate of stock 
turnover, increase as stores 
increase in size. 

(8). The amounts of selling ex- 
pense per $100 of total net 
sales increase, and the 
amounts per $100 of total net 
sales per stock turnover de- 
crease as the rates of stock 
turnover increase. 

3. YEARLY AMOUNTS OF SELLING 

EXPENSE IN RELATION TO THE 
AMOUNTS OF GOODS SOLD PER FULL- 
TIME SALES-PERSON AND TO THE 
METHODS BY WHICH SALESMEN 
ARE PAID, FOR STORES CLASSIFIED 
BY YEARS, BY SIZE, AND BY LOCA- 
TION. 

Sales of goods in clothing stores are 
determined in part by the personnel 
of the sales force, and the selling ex- 
pense in its relation to sales is con- 
trolled largely by the number of 
salesmen employed and the amount 
of sales which they make in a given 
length of time. In order to get some 
measure of the variations in selling 
expense for stores under different 



85 



conditions of operation and different 
methods of paying salesmen, it has 
been thought of interest to study a 
group of stores in detail. In the 
present section the analysis of selling 
expense is directed toward this end. 
Two units have been used to 
measure amounts of selling expense. 
First, they are expressed in terms of 
sales, and second, in terms of total 
expense. Both of these units, how- 
ever, are now refined so as to secure 
the amounts in terms of $1,000 of 
sales per full-time sales-person and in 
terms of the rapidity with which stock 
is turned during a year.* 

(1) — YEARLY AMOUNTS OP SELLING 
EXPENSE IN RELATION TO 
AMOUNTS OF GOODS SOLD PER 
FULL-TIME S^VLES-PERSON. 

A. — Yearly Amounts of Selling 
Expense per $100 of Total Net 
Sales and per $100 of Total 
Expense, 1919, 1918, and 1914. 

The records of 146 identical stores 
for the years 1919, 1918, and 1914 
are available for a study of the 
amounts of selling expense in stores 
in relation to the amount sold per 
full-time sales-person. Subsequent 
analysis — pages 89 to 111 — shows the 
amounts of selling expense expressed 
in terms of both sales and total ex- 
pense for stores classified by size and 
by the amounts sold per full-time 
sales-person. The present discussion 
is concerned with the relation between 

* The methods by which these units are 
computed are explained on page 4, items 
19, 20, 22, and 23. 



selling expense and sales measured in 
both units for the 146 stores for the 
three years. 

Table 43 shows for the 438 store- 
years, 1914, 1918, and 1919, combined, 
that it cost $10.76 to sell $100 worth 
of goods. In 1919 the corresponding 
amount was $10.39 ; in 1918 it was 
$10.94; and in 1914, $11.35. That is, 
the amounts decreased between 1914 
and 1918, and 1918 and 1919, the per- 
centage of difference between 1914 
and 1918 being 3.6, and between 1918 
and 1919, 5.0. When the amounts 
of selling expense per $100 of total 
net sales are shown for each $1,000 
sold per full-time sales-person they 
are reduced, but follow the same 
general direction from year to year. 
In 1919, the average amount was 
$0.51, in 1918 it was $0.70, and in 
1914, $1.00. That is, the amounts 
decreased between 1914 and 1918, and 
1918 and 1919, the percentage of 
change from 1914 to 1918 being 30.0, 
and between 1918 and 1919, 27.1. 

The occasion for the decrease from 
year to year is shown in Table 44, 
wherein the amounts sold per full- 
time sales-person are given. For the 
combined years the average amount 
so sold was $16,149. In 1919 it was 
$20,437, in 1918 it was $15,613, and 
in 1914, $11,345. That is, between 
1914 and 1918 the amounts increased 
by 37.6, and between 1918 and 1919 
by 30.9 per cent. The stores have 
much lower average amounts of sell- 
ing expense in 1919 than in the other 
years, when they are expressed in the 
activities of their full-time sales- 
people, than when they are expressed 



86 



solely in the amount of their total 
sales. 

In Table 3 attention was called to 
the fact that for the 154 stores con- 
sidered, the amounts of selling ex- 
pense per $100 of total expense in- 
creased between 1914 and 1918, and 
between 1918 and 1919, the percent- 
age of change being 1.6 per cent, 
between 1914 and 1918, and 4.5 per 



cent, between 1914 and 1919. For the 
146 stores now under consideration, 
as shown in Table 45, the actual 
amounts closely correspond to those 
for 154 stores, the direction of change, 
from year to year, however, being 
somewhat different. In 1914, $50.18 
out of every $100 of total expense was 
due to selling. In 1918 the amount 
was $49.39, and in 1919, $50.90. 



TABLE 43 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER $1,000 OF SALES 
PEE FULL-TIME SALES-PERSON, FOR 146 IDENTICAL STORES CLASSI- 
FIED BY AMOUNT OF SALES PER FULL-TIME S.VLES- 
PERSON, 1919, 1918, AND 1914 



Aneunt of 
Sales p«r 
Pull-ttme 
Salee-perBoz 
(tn OCo'al 



80 40 60 60 ICO 120 



Selling Expense per Sioo of Total Ilet Sales per $1,000 
of Sales per Pull-tliw £Qlee-por30n 



20 40 60 80 100 120 140 160 180 200 



Under tlS 

ti2 to tie 

tie to $24 
tZi to $32 
$52 & over 



151 
107 

iia 



Total 
(Average) 



Under $12 
$12 to $16 
tl6 to t24 
£24 to *32 
$52 & over 



Unfler Jl2 
Sl2 to 3l6 
Sl6 to 324 
#24 to 4S2 
f 32 & over 



Cndor $12 
Sl2 to $16 
tie to #24 
•24 to $32 

#32 & over 



$10.76 



11.19 
10.97 
11.22 
10.05 
8.54 



10.59 



9.21 
10.15 
11.34 
9.99 
8.62 



10.94 



10.24 
11.26 
11.57 
10.11 
S.59 



11.55 



12.02 
11.19 

9.81 
U.S9 

2.85 



100.0 



104.0 
102.0 
104.5 
95.4 
77.5 



85.6 
94.1 
105.4 
92.8 
80.1 



101.7 



05.2 
104.6 
105.7 
94.0 
51.9 



105.5 



111.7 

104.0 
91.2 

105. S 
26.5 



$0.67 



1.19 
0.80 
0.59 
0.57 
0.22 



0.51 



0.95 
0.72 

0.60 
0.56 
0.23 



0.70 



1.01 
0.84 
0.57 
0.57 
0.15 



l.CO 



1.34 
0.80 
0.55 
0.41 

o.oa 



AToraBS $30 •76 



AToraga $0.67 



100.0 

177.6 
119.4 
88.1 
SS.2 

32. a 

76J. 



I4i.a 

107.5 
89.6 
53.7 
54.3 



104.5 



150.7 
125.4 
85.1 
55.2 
22.4 



149.3 



200.0 
119.4 
79.1 
61.2 
11.9 



87 



That is, between 1914 and 1918 the 
amounts slightly decreased and be- 
tween 1918 and 1919 slightly in- 
creased. The differences in actual 
amounts and the direction of the 
changes from year to year are, of 
course, due to the fact that stores 
differing in number and identity are 
considered. 

When the amounts of selling ex- 



pense per $100 of total expense are 
shown for every $1,000 sold per full- 
time sales-person, as in Table 45, the 
$50.18 for 1914 becomes $4.42, the 
$49.39 for 1918 becomes $3.16, and 
the $50.90 for 1919 becomes $2.49. 
That is, between 1914 and 1918, and 
between 1918 and 1919 the amounts 
decreased, the percentages of change 
being, respectively, 28.5 and 21.2, 



TABLE 44 

TOTAL NET SALES, NUMBER OF FULL-TIME SALES-PEOPLE, AND AMOUNT OF SALES PER 

FULL-TIME SALES-PERSON, FOR 146 IDENTICAL STORES CLASSIFIED BY 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET 

SALES, 1919, 1918, AND 1914 





AiBOxmt of 

Selling 

Expense 

per ?100 of 

Total 

Ret Sales 


number 

of 
Store- 
7«&ra 


Total 
Het Sales 


Number of 

Full-time 

Sale 8 -people 


Het Sales per Pull-tlmo Sales-person 


Years 


Amouat 

< 


Per Cent. 




Graphic 

^ Aotual 
) 20 40 60 80 100 120 140 




Total 
(Average ) 


4S8 


$42,655,162 


2,641.4 


$16,149 




100.0 




• 




Dnder $6 
♦6 to $12 
$12 & over 


95 
241 

102 


4,475,628 
25,752,733 
12,428,801 


278.3 

1,509.3 

853.3 


16,075 
17,057 
14, 566 


99.S 

105.6 

90.2 


(Average ) 


i 








1 




Total 
(Average) 


146 


19,931,753 


975.3 


20,437 


126.6 






1919 


Dnder $6 

♦6 to $12 
$12 Je over 


39 
78 
29 


2,447,315 

12,206,633 

5,277,805 


127. C 
560.6 
287.1 


19,180 
21,774 
18,383 


118.8 
134.8 
113.8 










i 




Total 
(Average ) 


146 


13.981,287 


895.5 


15,613 


96.7 




! 

1 


19ia 


Under $6 

$6 to $12 
$12 & over 


31 
83 
32 


1,266,945 
8,994,157 
3,720,185 


86.6 
547.5 
261.4 


14,630 
16,428 
14,232 


90.6 

101.7 

88.1 










( 
1 




Total 
(Average) 


146 


8,742,122 


770.6 


11,345 


70.3 




; 




Vnder 56 

$6 to $12 
$12 & over 


25 
80 
41 


759,368 
4,551,943 
3,430,811 


64.1 
401.7- 
304.8 


11,847 
11,332 
11,256 


73.4 
70.2 
69.7 




: 




1 







Average $16,149 



These decreases from year to year, 
like those shown immediately above, 
where the unit of interpretation is 
sales, are to be attributed largely to 
the increased sales per full-time sales- 
person. 

Without repeating the conclusions 
reached on page 52, concerning the 
amounts of selling expense, first in 
terms of sales, and second in terms of 
total expense for the different years 
and the change from year to year, all 
of which are confirmed by the figures 
shown in Tables 43 and 45, it may be 
concluded from these tables that sell- 
ing expense per $100 of total net sales 
and per $100 of total expense for each. 
$1,000 of goods sold per full-time 
sales-person was less in 1918 than in 
1914 and less in 1919 than in either 
of the other years. That is, in spite 
of the increased selling and total 
operating expenses from year to year, 
increased sales per salesman sufficed 
to reduce the amount of selling ex- 
pense both in terms of sales and in 
terms of total expense. 

B. — Yearly Amounts of Selling 
Expeme per $100 of Total Net 
Sales and per $100 of Total 
Expense, for Stores Class^ified 
hy Size, 1919, 1918, and 1914. 

Two measures of the amounts of 
selling expense per $100 of total net 
sales and per $100 of total expense 
are available for stores classified by 
size and by amounts sold per full-time 
sales-person. The first is in terms of 
stock turnover, and the second, in 
terms of $1,000 sold per full-time 
sales-person. The present discussion 



has to do with the amounts in terms 
of sales per stock turnover for stores 
for 1919. 

The analysis above, page 42, and 
in various other places throughout 
the discussion, has shown that the 
amounts of selling expense per $100 
of total net sales increase as stores 
increase in size. Moreover, the dis- 
cussion in Volume I * of the Bureau 's 
study of Costs, Merchandising Prac- 
tices, Advertising and Sales in the 
Retail Distribution of Clothing, shows 
that the amounts of sales per full- 
time sales-person are larger in the 
large than in the small stores. Ac- 
cordingly, when stores are classified 
by size and by the amount of sales per 
full-time sales-person, as in Table 46, 
it might be expected that the stores 
within each sales-group which had 
large amounts of sales per full-time 
sales-person would have large selling 
expense per $100 of total net sales. 
This result, however, is not brought 
out in the table. The reason for this 
may be explained as follows : Not all 
large stores had large amounts, nor 
all small stores small amounts sold 
per full-time sales-person. Moreover, 
not all stores having small amounts 
of sales per full-time sales-person had 
relatively large selling expense, nor 
did all stores which had relatively 
large sales per full-time sales-person 
have relatively small amounts of sell- 
ing expense per $100 of sales. The 
size of the store alone would tend to 
cause selling expense to increase, 
while higher sales per sales-person 
would tend to reduce the amounts 

* Page 92. 



89 



TABLE 45 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL EXPENSE PER $1,000 OF SALES 

PER FULL-TIME SALES-PERSON, FOR 146 IDENTICAL STORES CLASSIFIED 

BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 

1919, 1918, AND 1914 





Apourt of 
SbIos per 
Pill-tlmo 
&elos-p«roos 
(In OOO's) 


[*umbor 

of 
Store- 
years 


Selling ExT-friee per $100 of Total expense 


.elllne Expense per :ilOO o*" total Lxpjnso per 
;i.000 of Seles per FVll-:lne Sales-persen 


Ve»r« 


Anount 


Pi-.r Cent. 


•iKxint 


F-r Cent. 




Orophlc 1 

1 20 4f 60 OP 100 120 


OTiphU 1 
fo 40 .0 ^i 100 120 140 160 180 200 




TctDl 
(AvoraB*) 


416 


$60.23 




ICO.O 


M.ll 




100.0 










Under $12 
512 tc $16 
416 to $£4 
$24 to $J2 

t52 1- over 


ISl 
107 
118 

39 
21 


51.06 
50.fl8 
51.81 
47.45 
43.11 


101.7 
101.1 
103.1 
«14.5 

65.8 


5.*4 
3.71 
2.70 


174.9 
U9.S 
66.8 


Tetol 
Uv&r&£0 ) 














~ 
















Tottl 
(AvoI-aTe) 


146 


5C.90 


101. -^ 


2.49 


80.1 










Under $12 
$12 to $16 
$16 tc $24 
$24 to $12 
$5? t ever 


15 
10 
61 
21 
19 


45. -59 
56.29 
51.40 
49.06 
41.62 


90.4 
112.1 
106.3 

97.7 
86.6 


4.'f 

4.02 
2.fl4 
1.76 
1.16 


149.0 


















^^ 


















Total 
(Avcrife) 


146 


49.19 


9t.l 


: . u 


ICI.6 










Itaoer $12 
$12 to $16 
$16 to $24 
$24 to $32 
Cl2 «. over 


60 
42 
57 
14 

5 


49.16 
49.97 
60.77 
41.12 
16.24 


W.3 
99.5 
101. 1 

es.B 

76.1 


3.73 

1.58 
1.02 


t5e.5 




















1 








52.8 




Tc tal 
(Avertpe ) 


146 


50.16 


99.9 


..>: 














Cnaer $12 
812 to $16 
516 to $24 
$24 to $12 

£;: i. ovtr 


66 
15 
20 
4 
I 


5?. 7 4 

48.77 
46.04 
4^.95 
20.11 


105.0 
97.1 
91.7 
65.5 
40.1 


5.36 
1.47 
2.-17 
i.JC 
























1 








17.0 



Avcrt.RO $60,25 



when they are expressed in sales. 
These different tendencies do not 
wholly balance each other. 

In so far as it is possible to gener- 
alize with respect to the amounts of 
selling expense for stores with dif- 
ferent amounts sold per full-time 
sales-person, it may be said that in 
terms of sales they vary inversely 
with the amounts sold per full-time 
sales-person. That is, the reduction 



in selling expense, accompanying in- 
creased sales on the part of salesmen 
in the larger stores, tends more than 
to balance the higher selling ex- 
pense associated with these stores. 

When the amounts of selling ex- 
pense are expressed in terms of net 
sales per stock turnover, however, as 
in the column of Table 46 bearing this 
caption, the direction of change in the 
amounts for stores having different 



90 



TABLE 46 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER STOCK TURNOVER 
FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SALES ' 

PER FULL-TIME SALES-PERSON, 1919 



Claselfled 


Amount of 
Sales per 
Pull-tlme 
Saloo-person 
(in OOC'e) 


NuiEber 

of 
Stores 


Selling Expeme per $100 of 
Total Nat Salee 


Selling Eipense per $100 of Total Net Salea 
per Stock Turnover 


Total 
Met SttlM 


Amount 


For Cent. 




Per Cent. 




'^-•''^'^' 1 Actual 
20 40 60 80 100 120 140 


Amount 


*°P"^ 1 Actual 
3 20 40 60 80 100 1£0 140 




Total 
(AveroRe ) 


269 


$10.19 




100.0 


$4.63 




100. c 




PiuJer tl2 

«12 to lie 
tie to tS4 

t24 to tJ2 
$32 & over 


50 

56 
103 
44 
36 


9.73 
9.71 
10.89 
9.59 
9.88 




B5.5 
86.3 
106.9 
94.1 

»7.0 


6.72 
4.62 
5.45 

4.00 
5.53 






Total 
(Average ) 


i 








^^^^ 










; 
















76.2 




Total 
(Averaeo) 


31 


5.88 


i 


67.7 5.92 


84.7 




Under 312 
Jl2 to $16 
tie to $24 
t24 to $32 
$32 4 over 


9 
4 

7 
7 

4 


7.26 
5.59 
6.43 
4.23 
5.31 


71.2 
64.9 

63.1 
41.5 
62.1 


5.19 
5.11 
4.95 
£.49 

5.52 




112.1 
67.2 
106.9 

S3.e 

71.7 


Under $40 






^■l^^B 




Tttel 
(Averafe) 


103 


7.50 


V3.6 


4.17 


90.1 




Under $12 
tl2 to $16 
tl6 to $24 
•24 to $32 
t52 & over 


16 
54 

31 
9 
15 


9.04 
8.62 
6.58 
7.18 
5.06 


ee.7 

64.6 
64.6 
70.5 
49.7 


6.03 
5.07 
3.66 
3.42 

2.66 






|4C to t80 














79.0 
73.9 
57.5 




Tiital 
(Average) 


92 


/ 
10.04 


98.5 








; 










Dnder $12 
$12 to $16 
$16 to $24 
$24 to $32 
$52 & over 


4 

IS 

50 
14 
9 


10.86 
11.29 

9.46 


loe.6 

110.8 
93.0 
67.9 

123.2 








tSO to tlBO 


















115.8 




i 














; 


















Total 
(Average) 


45 




113.2 


4.27 














Under $12 
$12 to $16 
tl6 to $24 
$24 to $32 
$32 k over 


1 

5 

IS 

14 




114.6 
96.5 
136.5 
100.9 
99.4 




100.9 


1180 & over 






3.39 
















; 






85.5 
68.5 




10.13 




3.17 


B_ ! 



Average $10.19 



Average $4.6S 



91 



sales per full-time sales-person is not 
so uncertain. Both turnover rates 
and selling expense in terms of sales 
are relatively higli in the large stores. 
When the amounts of selling expense 
are expressed per $100 of sales per 
turnover, they decrease as the amounts 
sold per full-time sales-person in- 
crease. That is, the more rapid turns 
associated with large sales per sales- 
person convert the questionable direc- 
tion of change from store-group to 
store-group into one which is abso- 
lutely certain. 

The regularity of the change in the 
amounts of selling expense per $100 
of total net sales and per $100 of 
sales per turnover for the stores, when 
classified by size and by the amounts 
sold per full-time sales-person, is 
shown graphically in Table 46. The 
detailed analysis of the figures points 
the following conclusions: First, the 
amounts of selling expense per $100 
of total net sales increase as the stores 
increase in size. Second, amounts of 
selling expense per $100 of total net 
sales for stores of a given size roughly 
decrease as the amounts sold per full- 
time sales-person increase. Third, 
the amounts of selling expense per 
$100 of total net sales per stock turn- 
over increase as stores increase in size 
for stores with sales under $180,000. 
This condition is also true for stores 
of different size, but with the same 
amounts of sales per full-time sales- 
person. Fourth, the amounts of sell- 
ing expense per $100 of total net sales 
per stock turnover decrease as the 
amounts of sales per full-time sales- 
person increase. This condition holds 



not only for stores as a whole, but 
also when they are classified by size. 

The practical significance of these 
conclusions to merchants is that the 
amounts of selling expense in terms 
of sales and in terms of sales per stock 
turnover may be decreased by increas- 
ing the amounts sold per full-time 
sales-pereon. The latter condition 
may result from stimulating the sales 
of a given force or from securing the 
same sales with a diminished force. 

The foregoing discussion refers to 
the amounts of selling expense for 
269 stores with different amounts of 
sales per full-time sales-person, for the 
year 1919, the measures of selling 
expense being given first in terms of 
sales, and second in terms of the num- 
ber of stock turns per year. 

Another method of analyzing the 
selling expenses for these stores for 
1919 is to express them in terms of 
sales per $1,000 of goods sold for each 
full-time sales-person. This is done 
in Table 47. In this year for the 269 
stores it cost on the average $0.50 to 
sell $100 worth of goods for each 
$1,000 sold per full-time sales-person. 
For the stores with sales under 
$40,000, the corresponding amount 
was $0.35; for those with sales of 
$40,000 to $80,000 it was $0.45; for 
those with sales of $80,000 to $180,000 
it was $0.52 ; and for those with sales 
of $180,000 and over it was $0.50. 
That is, the amounts tend generally 
to increase as the stores increase in 
size. It will be recalled that amounts 
of selling expense in terms of sales 
increase as stores increase in size. 
The amounts sold per full-time sales- 



92 



TABLE 47 

AMOUNT OF SELLING EXPENSE PER $100 OP TOTAL NET SALES PER $1,000 OF SALES 

PER FULL-TIME SALES-PERSON, FOR STORES CLASSIFIED BY SIZE OF STORE 

AND BY AMOUNT OF S.VLES PER FULL-TIME SALES-PERSON, 1919 



ci>sBiri(><i 

Total 
««t S«lgs 
(IB 000'<) 



Jteouct of 
Sale* p«r 
Pull-ti™ 
Saloa-perso: 
fin nnn'al 



OrapMo 
20 40 60 80 100 120 140 



Oraphlo I 

20 40 60 80 100 120 140 160 180 200 



|40 to iSO 



tSO to (ISO 



4l30 & 



Ondsr tl2 
tl2 to tl6 
tie to $24 

let to $32 

$32 Ji over 



Undsr 312 
tl2 to }1S 
616 to $24 
f24 to $32 
$32 It over 



Under $12 
il2 to $16 
$16 to )24 
324 to $32 
$37 It over 



Under $12 
$12 to $16 
$16 to $24 
t2i to $32 
$22 & over 




$10.19 



9. 73 
9.71 
10,89 
9.59 
9.88 



5.88 



7.26 
5.59 
6.43 
4.23 
S.31 



7.50 



9.04 
8.62 
6.58 
7.18 
5.06 



10.04 



10.86 
11.29 
9.48 
8.96 



11.54 



11.68 
9.83 
13.91 
10.28 
10.13 




100.0 



95.5 
95.3 
106.9 
94.1 

«7.0 



57. 7 



71.2 
S4.9 

£3.1 
41.5 
52. 1 



73.6 



e8.7 
84.6 
64.6 
70.5 
49.7 



98. S 



106.6 
110.8 
93.0 
87.9 
123.2 



113.2 

114.6 
96.5 
136.5 
100.9 
99.4 



$0.50 



0.95 
0.69 

0.57 
0.35 
0.24 



0.35 



0.73 
0.38 
0.32 
0.15 
0.15 



0.45 



0.90 
0.60 
0.35 
0.27 
0.12 



0.52 



1.05 
0.63 
0.50 
0.31 
0.33 



0.50 

1.12 
0.66 
0.7J 
0.57 
0.24 




100.0 

190.0 
138.0 
114.0 
70.0 
4S.0 

70.0 

146.0 
76.0 
64.0 
SO.O 
30.0 



SO.O 



180.0 
120.0 
70.0 
S4.0 
24.0 



104.0 

210.0* 
166.0 
100,0 
66.0 
66.0 



100.0 



224. 0* 
136.0 
146.0 
74.0 
48.0 



ATCraga $10.10 



AverflLge $0.50 



Pull loogt^ not ehovn 



person likewise tend to increase as 
stores increase in size. However, 
when the amounts of selling expense 
are expressed in terms of sales for 
each $1,000 of goods sold per full-time 
sales-person, inasmuch as they in- 



crease, it follows that the amounts of 
selling expense for stores of different 
size increase more rapidly in terms of 
sales than do the amounts sold per 
full-time sales-person. For the year 
1919, the actual amounts sold by each 



93 



person are given in tabular and 
graphic form in Table 48. 

"We are, however, not concerned at 
this place with store-size alone. 
Equally interesting details of Table 
47 are the amounts of selling expense 
in terms of sales alone and per $1,000 
sold per full-time sales-person for 
stores of essentially the same size, but 
with different amounts sold per full- 
time sales-person. The stores are 
divided as usual into four groups. 
Within each one the amounts of sell- 
ing expense rapidly decrease per $100 
of sales per $1,000 sold per full-time, 
sales-person as the amounts sold per 
salesman increase. For all the stores, 
the average amount of selling expense 
expressed in this way, for stores in 
which each full-time sales-person sold 
less than $12,000 per year, was $0.95. 
From this as a maximum, the amounts 
of selling expense decrease to $0.24 
for the stores having sales per full- 
time sales-person of $32,000 and over. 
It is unnecessary to point out in detail 
the rapidity of the decline in the 
amounts for the stores when classified 
by size. The part of the table bearing 
the caption, "Selling Expense per 
$100 of Total Net Sales per $1,000 of 
Sales per Full-time Sales-person," 
shows this in a graphic manner. 

The average amounts sold per full- 
time sales-person for the 269 stores 
classified by size and by the amounts 
of selling expense per $100 of total 
net sales are shown in Table 48. For 
each of the different groups of stores 
classified by size, the amounts sold 
per full-time sales-person decrease as 
the amounts of selling expense per 



$100 of total net sales increase. That 
is, the relationship between selling 
expense in terms of sales and amount 
sold per full-time sales-person is in- 
verse. 

The amounts sold per full-time 
sales-person, as shown in Table 48, 
are, of course, averages. It will be of 
interest briefly to indicate, for a single 
group of stores, how nearly these 
averages characterize the more de- 
tailed conditions. The 103 stores with 
annual sales in 1919 of $40,000 to 
$80,000 may be chosen for illustrative 
purposes. The average amount sold 
per salesman in the stores having 
selling expense less than $6 per $100 
of total net sales was $19,516. How- 
ever, in 32 per cent, of these stores, 
the amounts sold per salesman were 
less than $16,000 and in 68 per cent, 
in excess of this amount. For those 
stores having selling expense of $6 
to $12 per $100 of total net sales, the 
average amount was $15,788. In 55 
per cent, of the stores the amounts 
sold per full-time sales-person were 
less than $16,000 and in 45 per cent, 
in excess of this amount. For stores 
with selling expense of $12 and over 
per $100 of total net sales the average 
amount w^as $13,122. In 82 per cent, 
of the stores, however, the amounts 
sold per full-time sales-person were 
less than $16,000 and in 18 per cent, 
of the stores, $16,000 and over. The 
inverse relationship between the aver- 
age amount of selling expense per 
$100 of total net sales and the amount 
sold per full-time sales-person shown 
in Table 48 also holds for the amounts 
cf sales in detail. 



94 



TABLE 48 



TOTAL NET SALES, NUMBER OF FULL-TIME SALES-PEOPLE, AND AMOUNT OF SALES PER 

FULL-TIME SALES-PERSON, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, 1919 



p — — 


Amoijnt of 

Selling 

Expense 

per JlOO of 

Total 

Het Sales 


Kujnber 

of 
Stores 


Total 
Ket Sales 


Number of 

Pull-tine 

Sales-people 


Net Sales per Piai-tl,ne Sales-person 


Total 
Net Sales 


Amount 


Per Cent. 


(In OOO'a) 


Graphic . ^ , 

Actual 

? 20 40 60 80 100 120 




Total 
(Average ) 


269 


833,637,842 


1,666.5 


$20,215 






100.0 






Total 


Under $6 
$6 to $12 
Sl2 & over 


68 

149 

52 


3,842,272 

20,365,179 

9,460,391 


195.0 

1,001.3 

470.2 


19,704 
20,359 
20, 120 


97,5 
100.7 
99.5 


(Average ) 








f 








Total 
(Average ) 


31 


963,213 


56.3 


16,958 


83.9 






Under $40 


Ifeder $S 

$5 to $12 
$12 & over 


15 
14 

1 


493,027 

445,275 

23,911 


23.8 

30.6 

2.4 


20,715 
14,584 

9,963 


102.5 
72.1 
49.S 






Total 
(Average ) 


103 


5,872,443 


353.3 


16,622 


82.2 






#40 to ^0 


Under $5 

§6 to $12 
§12 8: over 


41 
51 
11 


2,257,946 

2,941,336 

673,161 


115.7 

186.3 

51.3 


19,516 
15,788 
13,122 


96.5 
78.1 
64.9 










Total 
(Average ) 


92 


10,840,797 


564.2 


19,214 


95.0 








Under $6 
$6 to Jl2 
§12 & over 


11 
56 
25 


1,091,299 
6,752,827 
2,996,671 


56.5 
344.3 
164.4 


19,663 
19,613 
18,228 


97.3 
97.0 
90.2 


;J80 to $180 














TotaJ 
(Average ) 


43 


16,011,389 


692.2 


23,131 


114.4 






■';130 & over 


Under {5 

$5 to Jl2 
Jvl2 fc ovor 


28 

IS 


10,244,741 
5,766,648 


440.1 
252.1 


23,278 
22,874 






115.2 
113.2 






















Average $20, 


205 





The discussion immediately above 
refers to the year 1919 alone. In view 
of the increase in the amounts of sales 
per full-time sales-person and the de- 
crease in selling expense per $100 of 
total net sales from year to year, it 
has been thought necessary to extend 
the analysis by comparing a group of 



identical stores for the years 1919, 
1918, and 1914 in the particulars 
under discussion. For this purpose 
the records of 146 identical stores are 
available. 

Table 49 shows for 438 store-years 
the amounts of selling expense per 
$100 of total net sales and per $100 



95 



TABLE 49 

AMOUNT OF SELLING EXPENSE PER $100 OP TOTAL NET SALES PER $1,000 OF SALES 

PER FULL-TIME SALES-PERSON, FOR 146 IDENTICAL STORES CLASSIFIED 

BY SIZE OF STORE AND BY AMOUNT OF SALES PER FULL-TIME 

SALES-PERSON, 1919, 1918, AND 1914, COMBINED 





AnO'int of 
Salee |>cr 
Pjll-tliie 
Seles-parson 
(In OOO'l) 


Kunbcr 

or 
Store- 
jeara 


Selling Expense pfir $100 of 
Total llct Soles 


Selll 


Tfi Bipeiuo per Oloo of Tctjl li;t Sale: per 51,000 
of Solec per F\ill-tl^e walee-peraon 


Total 
Net Selce 
(In OCO'a) 


Amo'jnl 


Per Cent. 


Ano>int 


Per Cent. 


Graphic Let- 1 
20 40 60 00 100 120 1<0 


OTaF>>lc 
3 20 40 60 80 100 120 140 160 190 200 22 


Aet'ial 






Total 

«Avor»R«) 


438 


$10.76 




100.0 


Co. 67 




100.0 










Under Jl2 
tl2 to $16 
Sl6 to $24 
824 to $32 
S3; Ik over 


151 
107 
118 
39 
23 


11.15 
10.97 
11.22 
10.05 
8.34 


104.0 
102.0 
104.3 
S3. 4 
77.5 


1.19 

o.eo 

0.59 
0.37 
0.';2 


177.6 
119.4 
88.1 
55.2 

32.8 


Totel 






lAveraee ) 










j 








Total 
CAveroge) 


125 


8.57 




79.6 


c.<); 


122.4 








Under $12 
8l2 to $16 
816 to $24 
S24 to $32 
S32 i over 


71 
23 

n 

10 
4 


10.15 
6.90 
7.02 
6.20 
5.02 


S4.3 

e4.i 

65.2 
67.6 
«6.7 


1.31 

0.50 
0.37 
0.-!3 
0.14 


195.5 
74.6 
55.2 
34.3 
20.0 


Under $40 


1 


^^^^^_ 




Total 
f Average) 


163 


9.30 


65.5 


0.69 


103.0 










Onder $12 
$12 to ?ie 

*16 to $24 

824 to $32 
$32 1 over 


63 

48 
38 
1 

1 


10.92 
9.45 
7.62 
7.15 
4.03 


100.6 

e7.e 

■70.S 
«£.4 
S7.S 


1.06 
0.68 
0.42 
0.26 
0.09 


161.2 
101. S 
62.T 
96.8 
13.4 










— 


— 




Total 
lAveraco' 


108 


10.70 


99.4 


0.6S 


97.0 










Itader $12 
812 to $16 
Sl6 to $24 
•24 to $32 
8S2 4 ovw 


14 

31 
46 
12 
5 


11.63 
11.11 
10.26 
10.29 
11.38 


106.1 

103.3 
95.4 
95.6 

105.8 


I.IS 


171.6 
119.4 

eo.6 

SB .2 


J80 to $180 








0.54 
0.39 
0.31 






^^^^""""i 


"" 














Total 
(Avere^e ) 


42 


12.09 


112.4 


0.60 


89.6 










Under $12 
$12 to lie 

»16 to $24 
•S4 to $32 
»32 i over 


3 
S 
17 
10 
7 


14.76 
14.03 
13.13 
10.56 
8.45 


137.2 
1S0.4 
122.0 
96.1 

K.i 


1.41 
1.04 

0.67 
0.38 
0.23 


210.4 
155.8 


















c 








34.5 



of sales for each $1,000 sold per full- 
time sales-person for stores classified 
by size and by the amounts so sold. 
The total amounts of selling expense 
per $100 of total net sales for each 
group of stores classified by size, while 
differing in degree from the figures 



shown for 1919, reveal the same un- 
mistakable tendency for the amounts 
to increase as the stores increase in 
size. An inverse tendency is again 
shown in the amounts of selling ex- 
pense per $100 of total net sales per 
$1,000 sold per full-time sales-person 



96 



for the stores classified by size. For 
stores of a given size, the amounts of 
selling expense per $100 of total net 
sales and per $100 of total net sales 
for each $1,000 sold per full-time 
sales-person decrease as the amounts 
sold per full-time sales-person in- 
crease. 



Table 49 gives the data for the com- 
bined years and should be closely 
studied in connection with Tables 50 
to 52, inclusive, for the years 1919, 
1918, and 1914, respectively. It is 
unnecessary to point out in detail the 
size of the amounts of selling expense 
in terms of sales alone and in terms 



TABLE 50 

AMOUNT OF SELLING EXPENSE PER $100 OP TOTAL NET SALES PER $1,000 OF SALES 

PER FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND 

BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 



CltiDirieil 

Tot.l 
Mat SaKa 
(In OOO'a) 


Amount of 
Sales per 
Pull-tliM 
Salea-peraon 
(In OOO'a) 


Kunber 
of 

Storaa 


Sal 


ling Expense per $100 of To 
Met Ealee 


al 


Selling Eipenae por $100 of Total Net Salea per $1,000 
of Sales per Poll-time Sales-person 


Amount 


Per Cent. 


Aatount 


Per Cent. 


Graphic 
20 40 6p 69 lOO 120 14< 


1 Actual 
3 


20 40 


•"•phi' j Actual 
60 80 100 120 140 160 180 200 220 




Total 
(Average) 


146 


(10.39 




100.0 


$0.51 






i 


100.0 




! ■■ 




^^^^^H 




Orvlsr (12 
(12 to (16 
(16 to (24 
(24 to (32 
(32 k ovar 


15 
30 
61 
21 
19 


9.21 
10.13 
11.34 
9.99 
8.62 

6.77 


88.6 
97.5 

109.1 
96.2 
83.0 


0.95 
0.72 
0.60 
0.36 
0.2S 


; 


186.3 
141.2 
117.6 




1 




(Avorags) 


i 








=!" 








45.1 




Total 
(ATorage ) 


14 


65.2 


0.43 


^^^ 




84.3 




Ondar (12 
(12 to (16 
(16 to (24 
(24 to (32 
(32 * o«r 


1 
4 
2 
2 


6.99 
8.07 
7.03 
4.7S 
7.11 


67.3 
77.7 
67.7 
45.5 
68.4 


0.71 
0.60 
0.35 
0.18 
0.20 






139.2- 
117.6 
68.6 
35.3 
39.2 


Ocdar (40 


! 


= 


■■ 




Total 
(Average ) 


54 


7.49 


72.1 


0.46 






90.2 






^^^^ 




Under (12 
(12 to (16 
(16 to (24 
(24 to $32 
(32 4 over 


8 
18 
18 
4 
6 


10.12 
8.70 
6.68' 
S.IO 
4.22 


97.4 
83.7 
64.3 
68.7 
40.6 


1.06 
0.61 
0.36 
0.23 
0.10 


: 


207.8 
119.6 

70.6 
45.1 
19.6 


(40 to leo 


i 

i 




3- 




Total 
(Avorocc) 


54 


10.19 


98.1 


0.56 










* 




Under (12 
(12 to (16 
(16 to $24 
. (24 to $32 
(32 i ovor 


2 

11 
30 
1 
4 


8.95 
11.40 
9.94 
8.43 
12.88 


86.1 
109.7 
95.7 
81.1 
124.0 


0.89 
0.82 
0.53 
0.32 
0.35 


174.5 
160.8 
103.9 
62.7 


(80 to (180 






! 1 




















i 






Total 
(Average) 


24 


11.54 


111.1 


0.47 






i 






(180 k over 


Under $12 
$12 to (16 
(16 to (24 
(24 to (32 

$32 4 ovor 


8 
6 
7 


13.90 
10.73 
8.46 


isj.e 

103. 3 

ei.3 


0.73 
0.39 
0.23 








LZ^ i 

















Average $10.39 



97 



of sales per $1,000 sold per full-time 
sales-person for the stores in each of 
the years. The discussion of the 269 
stores for 1919 applies equally well 
to Table 50 which is based upon the 
records of 146 stores in the same year. 
Minor differences in the actual 



amounts and in the tendencies re- 
vealed may be seen from year to year 
by consulting Tables 51 and 52 for 
the years 1918 and 1914, respectively. 
A comparison of the changes in the 
amounts of selling expense from year 
to year for this group of identical 



TABLE 51 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER $1,000 OF SALES 

PER FirLL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND 

BY AMOUNT OP SALES PER FULL-TIME SALES-PERSON, 1918 



Classlflad 

Tot>l 
Set Sales 
(In 000' «) 



Anount of 
Sales per 
PuU-tln» 
Sales-poraor 

(m coo's) 



Selling Expanse par $100 of Total 



20 40 eo 80 100 120 140 



GrapMc | Actual 

20 40 CO 60 100 ino 140 160 180 



Total 
(Avaraga) 



Dndar il2 
#12 to $1$ 
$16 to $24 
•24 to $32 
tS2 & ova? 



(Avsraga) 



Obdsr $40 



Dhflar $12 
$12 to $16 
$16 to $24 
324 to $32 
$32 & over 



Under $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 Be ovor 



Total 
(Average) 



tBo to $ieo 



Ondar $12 
$12 to $16 
$16 to $24 
$2« to $32 
$32 & ovor 



Total 
(Avarfge) 

Dhder $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 4 over 



10.24 
11.25 
11.37 
10. U 
5.53 



8.25 



9.90 
7.17 
7.53 
6.48 
2.77 



14.39 
12.23 
9.32 



Average $10.94 



102.9 
103.9 
S2.4 
51.0 



75.4 

SO. 5 
65. S 
68.8 
SO. 2 
25.3 



es. 



95.8 
67,0 
73.7 
SI. 7 



100.1 



91.4 
C3.3 
105.9 
115.7 
03.1 



131.6 
111.8 

es.2 



So. 70 



1.01 
0.84 
0.57 
0.37 
0.15 



0.70 

1.14 

0.53 
0.40 



0.71 



0.99 
0.70 
0.44 

0.12 



0,64 



0.89 
0.72 
0.58 
0,48 
0,19 



1.13 
0.60 
0.34 



Aversga $0.70 



100.0 

144.3 
120.0 
81.4 
62.9 
21.4 



100.0 

162.9 
75.7 
57.1 
32.9 

oe.6 



101.4 



141.4 
100,0 
62.9 
17.1 



91.4 

127.1 
102.9 
88.9 
68.6 
27,1 



100.0 



161.4 
65.7 
48.6 



98 



stores as classified is interesting. In 
Table 43 for this same group of stores 
it was shown that the amounts of 
selling expense per $100 of total net 
sales decreased from 1914 to 1918, 
and 1918 to 1919. A similar, but 
more pronounced decrease was ob- 
served for the amounts of selling ex- 
pense per $100 of total net sales per 
$1,000 sold per full-time sales-person. 
These tendencies for stores unclassi- 
fied as to size, as in Table 43, are 
duplicated in Tables 50 to 52, inclu- 
sive, where stores are classified by- 
size and by the amounts sold per 
person. As illustrative of the changes 
in the amounts from year to year for 
the stores arranged in this manner, 
the group having sales from $40,000 
to $80,000 may be chosen. For the 
combined years the average amount 
of selling expense per $100 of total 
net sales was $9.20. For 1914 it was 
$10.96, for 1918 it was $9.36, and for 
1919, $7.49. Similar decreases from 
year to year are observed for stores 
having sales of $40,000 to $80,000, 
and with amounts sold per full-time 
sales-person of less than $24,000. For 
the stores having amounts sold per 
full-time sales-person in excess of 
$24,000 the number of instances are 
too few to serve as a basis for gener- 
alization. Had more stores in this 
group been available for study, it is 
felt that the direction of change 
would have been the same. Analysis 
of the stores with larger annual sales 
gives the same general result. 

The amounts of selling expense per 
$100 of total net sales for each $1,000 
sold per full-time sales-person, for the 



stores with annual sales of $40,000 
to $80,000 may be compared also from 
year to year. For the combined years, 
the amount was $0.69. For 1914 it 
was $0.97, for 1918 it was $0.71, and 
for 1919, $0.46. That is, the amounts 
decreased from 1914 to 1918, and 1918 
to 1919, as one would expect in view 
of the larger amounts sold per sales- 
person in the later than in the earlier 
years. Similar decreases occur from 
year to year for the stores in this 
group when classified by the amounts 
sold per full-time sales-person. The 
reader may compare the amounts by 
consulting the details of Tables 50 to 
52, inclusive. 

The amounts of selling expense per 
$100 of total net sales for each $1,000 
sold per full-time sales-person depend 
upon the relation first, of selling ex- 
pense to sales, and second, of the num- 
ber of sales-people to the total amount 
sold during the year. Tables 53 to 
55, inclusive, are introduced to show 
from year to year, for stores classi- 
fied by size and by amounts of selling 
expense in relation to sales, the extent 
of the salesmen's activities. The de- 
tails should be consulted in connection 
with Tables 49 to 52. A moment's 
consideration of them may be of 
interest. For the combined years, 
based upon 438 store-years, the aver- 
age amount of goo'ds sold per full- 
time sales-person was $16,149. This 
amount agrees veiy closely with the 
result secured in Volume I, page 92, 
of the Bureau's study of Costs, Mer- 
chandising Practices, Advertising and 
Sales in the Retail Distribution of 
Clothing, where the average amount 



99 



TABLE 52 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER $1,000 OF SALES 

PER FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND 

BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1914 





Amomit of 
Sales per 
Pull- time 
Sales-peraon 
(In OOc'a) 


Number 

of 
Stores 


Soiling Expense per $100 of Total 
Net Sales 


Selling Expense per $100 of Total lict Sales per 
$1,000 of Seles per Piill-tlme Sales-person 


Total 
Net Salee 


Amount 


Per Cent. 


Aaoluit 


Per Cent. 




3 20 40 


Graphic 
60 60 100 120 140 16C 


Actual 


Graphic 
3 20 40 60 80 100 120 140 160 


Actual 




Total 
(Average) 


146 






100.0 


$1.00 




100.0 








i 




Under $12 
$12 to #16 
$16 to 024 
{24 to $32 
$32 & over 


66 
55 
20 
4 

1 


12.02 
11.19 

9.81 
11.39 

2.86 


105.9 
98.6 
86.4 

100.4 
25.1 


1.34 

0.80 
0.53 
0.41 
0.08 


134.0 
80.0 
53.0 
41.0 
8.0 


Total 
(Average ) 




i 










i 




Total 
(Average ) 


71 


9.19 


81.0 


1.02 


102.0 




^^^^^ i 






Under tl2 
$12 to (H6 
$16 to $24 
$24 to $32 

$32 k over 


45 

16 
8 

S 


10.66 
6.68 
6.61 
6.75 


93.9 
58.9 
68.2 
69.6 


1.48 
0.48 
0.36 
0.25 


148.0 
48.0 
36.0 
25.0 


Under $40 


i 


j 




Total 
(Average) 


48 


10.96 


96.6 


0.97 


97.0 










Under $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 & over 


31 
10 
5 
1 
1 


11.26 
10.56 

9.93 
18.06 

2. 85 


99.2 
93.0 
87. S 
159.1 
26. 1 


1.17 
0.77 
0.69 
0.63 
0.08 


117.0 
77.0 
56.0 
63.0 
6.0 


$40 to $B0 


^^^ 


i 

t 


I 








"■■* 




Total 
(Average ) 


22 


11.63 


102.5 


0.90 














Under $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 4 over 


7 
9 
6 


13.02 
11.97 
9,58 


114.7 

105.5 
84.4 


1.34 

0.88 
0.50 


134.0 
88.0 


$80 to $180 








1 










j 


. 




Total 
(Average) 


5 


IS. 93 


122.7 


1.08 


108,0 






i 




Under $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 i over 


5 
1 

1 


14.76 
13.34 
IJ.ll 


rw.o 

U7.6 
116. S 


1.41 
0.89 
0.73 


141.0 
89.0 
73.0 


$180 & over 


^"^ 


1 


^^^mM^mm^am 


! 
I 

i 




1 



Average $11 .ZS 



for 974 store-years is seen to be $16,- 
230. In 1919, the average amount for 
146 stores was $20,437 ; in 1918 it was 
$15,613, and in 1914, $11,345. These 
amounts for the individual years like- 
wise closely correspond to those shown 
in Tables 61, 62, and 63, respectively, 



in Volume I of the Bureau's study, 
referred to above. Moreover, the in- 
creases from year to year also hold 
for each group of stores when classi- 
fied by size. When the stores are 
grouped by size, the amounts sold per 
full-time sales-person are shown to 



100 



increase for the combined years and 
for each year as the size of the store 
increases. This condition also agrees 
with that shown in Volume I of the 
Bureau's study. 

It was sho\Aai in Table 48 for 1919 
for 269 stores that the amounts sold 
per full-time sales-person vary in- 



versely with the amounts of selling 
expense per $100 of total net sales, 
when the stores are treated as a total 
and when classified by size. A similar 
condition holds, as is shown in Tables 
53 to 56, for a group of identical 
stores for the combined and indi- 
vidual years 1919, 1918, and 1914. 



TABLE 53 

TOTAL NET SALES, NUMBER OF FULL-TIME SALES-PEOPLE, AND AMOUNT OF SALES PER 

FULL-TIME SALES-PERSON, FOR 146 IDENTICAL STORES CLASSIFIED BY 

SIZE AND AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL 

NET SALES, 1919, 1918, AND 1914, COMBINED 



ClasBlfled 

Total 
Net Salea 
(in 000' b) 


Amount of 

Selling 

Expense 

per $100 of 

Total 

Net Salea 


Number 

of 
Store- 
years 


Total 
Net Sales 


Number of 
Pull- time 
Saloa-poople 


Not Sales per Pull-time Sales-person 


Amount 


Per Cent. 




Graphic 1 

1 Actual 
5 20 40 60 80 100 120 140 160 




Total 
(Average ) 


438 


$42,655,162 


2,641.4 


$16, 149 


i 


100.0 






Total 


Under $6 

$6 to $12 
$12 & over 


96 
241 

102 


4,473,628 
25,752,733 
12,428,801 


278.3 
1,509.8 

853.3 


16,075 
17,057 
14,566 


99.5 
105.6 
90.2 


(Averoge) 


i 




^"T 




1 
j 




Total 
(Average ) 


125 


3,490,472 


335.7 


10,398 


64.4 


Under $40 


Under $6 

$6 to $12 
$12 & over 


41 

63 
21 


1,143,342 

1,748,712 

598,418 


90.1 
160.2 
85.4 


12, 690 
10,916 
7,007 


78.6 
67.6 
43.4 


^^^■^ 




Total 
(Average) 


163 


9,223,468 


689.4 


13,379 


82.8 






$40 to Seo 


Under $6 

$6 to $12 
$12 & over 


45 
83 

35 


2,435,176 
4,711,780 
2,076,512 


140.7 

376.2 
172.5 


17,308 
12,525 
12,038 


107.2 
77.6 
74.5 


1 




; 




1 




Total 
(AverDge) 


108 


12,642,526 


764.1 


16,546 


102.5 




1 


$80 to $180 


Under $6 

$6 to $12 
$12 8c over 


9 
66 

33 


895,110 
7,959,099 
3,788,317 


47.5 
476.1 
240.5 


18,844 
16,717 
15,752 


116.7 
102.5 
97.5 










; 




Total 
(Average) 


42 


17,298,696 


852.2 


20,2;9 


125.7 




i 


$180 Jc over 


Under $6 

$6 to $12 
$12 & over 


29 
13 


11,333,142 
8,965,554 


497.3 
354.9 


22,769 
16,809 


141.1 
104.1 




1 ^^" 







Average $16,149 



101 



From the discussion of the amounts 
of selling expense per $100 of total 
net sales and per $100 of sales per 
$1,000 sold per full-time sales-person 
for stores classified by size and by the 
amounts sold per full-time sales- 
person, it may be concluded as fol- 
lows: First, the amounts of selling 



expense per $100 of total net sales 
roughly decrease as the amounts sold 
per full-time sales-person increase. 
This condition is true not only for the 
stores treated as a whole, but also 
when they are classified by size. 
Moreover, it is true for the combined 
as well as for the individual years. 



TABLE 54 

TOTAL NET SALES, NUMBER OP FULL-TIME SALES-PEOPLE, AND AMOUNT OF SALES PER 

FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND AMOUNT 

OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, 1919 





Amount of 

Selling 

Expense 

per §100 of 

Total 

Hot Sales 


number 

of 
Stores 


Total 
Net Sales 


Huraber of 

Pull-time 

Sales-people 


Not Sales per Full-time Sales-person 


Total 
Net Sales 


Amount 

( 


Per Cant. 


(In coo's) 


Graphic . . , 
" Actual 

5 20 40 60 80 100 120 140 




Total 
(Average ) 


146 


$19,931,753 


975.3 


$20,437 












Total 


Under |6 

f6 to $12 
§12 & over 


39 
78 
29 


2,447,315 

12,206,633 

5,277,805 


127.6 
560.6 
287.1 


19,180 
21,774 
18,333 


93.3 
106.5 
89.9 


(Average ) 










1 




Total 
(Average) 


14 


428,714 


27.2 


15,762 


77.1 




1 


ISider $40 


Dnder $6 

$6 to |12 
}12 & over 


5 

9 


140, 498 
238,216 


7.9 

19.3 


17,785 
14,933 


87.0 
73.1 










Total 
(Average ) 


54 


3,059,173 


187.6 


16, 307 


79.8 






$40 to $80 


Cnder $5 

$5 to 512 
$12 & over 


25 

22 

7 


1,411,707 

1,265,481 

381,935 


72.2 
84.1 
31.3 


19,553 
15,047 
12,204 


95.7 
73.6 
59.7 






; 
1 




Total 
(Average) 


54 


6,354,238 


347.3 


13,296 


89.5 






#80 to $180 


Dndor JS 

§6 to $12 
$12 S: over 


9 
29 

16 


895,110 
5,572,114 
1,887,014 


47;5 
197.1 
102.7 


18,844 
18,123 
18,374 


92.2 
88.7 
89.9 










Total 
(Average) 


24 


10,089,628 


413.2 


24,418 


119.5 






^lao k over 


Under $6 

$6 to $12 
$12 & over 


18 
G 


7,080,822 
3,008,806 


260. 1 
153.1 


27,223 
19,653 


133.2 

96.2 











Average §20,437 



102 



Second, the amounts of selling ex- 
pense per $100 of total net sales per 
$1,000 sold per full-time sales-person 
increase as the stores increase in size 
and decrease as the amounts sold per 
full-time sales-person increase. That 
is, relative to the size of the stores, 
the amounts vary directly, but rela- 



tive to the amounts sold per full-time 
sales-person, they vary inversely. 
This condition holds not only for the 
stores in the combined years, but also 
for the stores in each of the years 
1919, 1918, and 1914. 

The practical aspects of these con- 
clusions from the standpoint of the 



TABLE 55 

TOTAL NET &/\LES, NUMBER OF FULL-TIME SALES-PEOPLE, AND AMOUNT OF SALES PER 

FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND AMOUNT 

OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, 1918 





Araoiint cf 

Selling 

Excense 

per 5lC0 of 

Tctal 

"et Sales 


KxCT.ber 

cf 
Stores 


Total 
Ket Sales 


Nvunber of 

Pull-tine 

SQles-people 


Ket Saler per Pull-tire Sales-person 


Total 
Ket Sales 


Amount 

c 


For Cent. 


(In OCO's) 


Graphic , ^ , 
Actual 

) 20 40 60 80 100 120 140 




Tctal 
(Average ) 


146 


$13,981,267 


e£5.5 


CIS, 613 




100.0 




i 


Total 


Under $6 

S6 to 512 
ftl2 & over 


31 
83 
32 


1,266,945 
8,904,157 
3,720,165 


EC. 6 
547.5 
261.4 


14,6-0 
16,428 
14,232 


93.7 

105.2 

91.2 


(Averfcge) 










i 




Total 
(Average) 


40 


1,193, €73 


100.8 


11,842 


75.8 


Under t40 


Under $6 
C€ to ei2 
$12 & over 


15 

19 

6 


437,693 
564,477 
191,503 


32.4 
45.4 
23.0 


15,509 
12,433 
8,326 


86.5 
79.6 
53.3 


i 




^^^^^ 




Total 
(Average ) 


61 


3,526,649 


267.6 


13,179 


84.4 








Under S6 

$6 to $12 
$12 & over 


16 

32 
13 


829,262 

1,034,677 

862,620 


54.2 

142.0 

71.4 


15,300 
12,920 

12,084 


98.0 
82.8 
77.4 


$40 to J80 










Total 
(Average ) 


32 


3,74 6,707 


219.9 


17,038 


109.1 




i 


$80 to fl80 


Under ?6 

56 to $12 
$12 & over 


23 
9 


2,716,734 
1,027,973 


161.4 
58.5 


16,845 
17,572 


107.9 
112.5 












Total 
(Average) 


13 


5,514,258 


307.2 


17,950 


115.0 






tlBO fc over 


Under $6 
#6 to $12 
$12 & over 


9 
4 


3,676,369 
1,637,689 


198.7 

ice. 5 


19,509 
15,096 




125.0 
96.7 











Avorac© $15,613 



103 



merchant may be stated as follows: 
If it is desired to decrease selling 
expense in relation to sales, one 
method by which it may be done is 
to increase the amounts sold per full- 
time sales-person per year. The ex- 
tent to which the reduction may be 
expected, for stores of a given size. 



is revealed in the detailed figures in 
Tables 46 to 56, inclusive. 

In the foregoing discussion the 
amounts of selling expense have been 
expressed per $100 of sales, per $100 
of total net sales per stock turnover, 
and per $100 total net sales for each 
$1,000 sold for a full-time sales- 



TABLE 56 



TOTAL NET SALES, NUMBER OF FULL-TIME SALES-PEOPLE, AND AMOUNT OF SALES PER 

FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND AMOUNT 

OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, 1914 



Classified 


Amount of 

Selling 

Expense 

per 5100 of 

Total 

Net Sales 


Number 

of 
Stores 


Total 
Net Sales 


Hunter of 

Full-time 

Sales-people 


p • 

Net Sales per Pull-tlce Sales-person 


Total 
Met Sales 
(In OOO'a) 


Amount 


Per Cent. 


Actual 
) 20 40 60 80 100 120 140 




Total 
(Average) 


146 


$8,742,122 


770,6 


$11,345 




100.0 






Total 


Under $5 

S6 to $13 
$12 i over 


25 
80, 
41 


759,368 
4,551,943 
3,430,811 


64.1 
401.7 
304.8 


11.847 
11, 332 
11,256 


104.4 
99.9 
99.2 


(Average ) 


^■■■■^■^ 




i 




1 

i 




Total 
(Average ) 


71 


1,868,085 


207.7 


8,994 


79.3 


Under ?40 


Under §6 

>6 to $18 
$12 & over 


21 
35 
15 


565,151 
896,019 
406,915 


49.8 
95.5 
62.4 


11,348 
9,382 
6,521 


100.0 
82.7 
57.5 






i 




Total 
(Average ) 


48 


2,637,646 


234.2 


11,262 


99.3 






|40 to 580 


Under $6 
$6 to §12 
$12 Jc over 


4 
29 
15 


194,217 

1,611,722 

831,707 


14.3 

150.1 

69.8 


13,582 
10,738 
11,916 


119.7 

94.6 

105.0 


; 




1 








Total 
(Average ) 


22 


2,541,581 


196.9 


12,908 


113.8 






$30 to $180 


Under *6 

$6 to $12 
$12 8c over 


14 
8 


1,668,251 
873,330 


117.6 
79.3 


14,186 
11,013 


125.0 
97.1 








i 

1 




Total 
(Average ) 


5 


1,694,810 


131.8 


12,859 


113.3 




^^^^^^^^ 


$180 S-. over 


Under $6 
$6 to tl2 
Sl2 U over 


2 
3 


375,951 
1,318,859 


38.5 
93.3 


9,765 
14, 136 


■ ^■^Mll^^ ' 


86.1 
124.6 











Average Jll,345 



104 



person. They may also be stated in 
terms of $100 of total expense, per 
$100 of total expense per stock turn- 
over, and per $100 of total expense 
per $1,000 sold per full-time sales- 
person. For these latter purposes, 
the records of 269 stores are available 
for 1919 and 146 for each of the years 
1919, 1918, and 1914. By following 
the order of discussion previously 
employed, the amounts may now be 
related to total expense. 

Table 57, which applies to 269 
stores for the year 1919, shows the 
amounts of selling expense in stores 
classified by size and by the amount 
of sales per full-time sales-person. 
The units of analysis used are: for 
each $100 of total expense, and for 
each $100 of total expense per stock 
turnover. 

It will be recalled from an earlier 
discussion that the amounts of selling 
expense and total expense per $100 
of total net sales increase as the stores 
increase in size. When the amounts 
of selling expense are expressed in 
terms of $100 of total expense, that is, 
as proportions of total expense, they 
also increase as the stores increase in 
size. This means that the rate at 
which selling expense increases with 
the size of the store exceeds that for 
total expense. 

For the 269 stores considered in 
Table 57, the average amount of sell- 
ing expense per $100 of total expense 
in 1919 was $48.92. For the stores 
with sales under $40,000 it was 
$34.90; for those with sales of $40,- 
000 to $80,000 it was $42.00; for 
those with sales of $80,000 to $180,000 



it was $51.66, and for those with sales 
of $180,000 and over it was $49.95. 
That is, the amounts increase with 
the size of the store except for the 
last group of stores — those with 
annual sales of $180,000 and over. 
When the amounts of selling expense 
are expressed in terms of total ex- 
pense per stock turnover,* the aver- 
age amount for all stores is $22.24. 
For those stores with sales under 
$40,000 it is $23.27; for those with 
sales of $40,000 to $80,000 it is $23.33 ; 
for those with sales of $80,000 to 
$180,000 it is $27.19; and for those 
with sales of $180,000 and over it is 
$18.50. That is, the amounts for the 
first two groups are essentially con- 
stant. For the group with sales of 
$80,000 to $180,000, the average is 
considerably larger, and for the group 
with sales of $180,000 and over, 
smaller than that for any other single 
group. The size of the amounts for 
the latter group of stores is explained 
primarily by the presence of some 
stores with large sales and rapid stock 
turns. 

When the different groups of stores 
are considered according to the 
amounts sold per full-time sales- 
person, the amounts of selling expense 
per $100 of total expense irregularly 
decrease as the amounts sold per per- 
son increase. The decrease is some- 
what more regular, however, when 
the amounts of selling expense per 
$100 of total expense are shown for 
each stock turnover. 

Table 57 is instructive because of 

* The method by which this unit is com- 
puted is explained on page 4, item 20. 



105 



TABLE 57 

AMOUNT OF SELJ:.ING EXPENSE PER $100 OF TOTAL EXPENSE PER STOCK TURNOVER, 

FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SALES 

PER FULL-TIME SALES-PERSON, 1919 



ClasEifisd 

Totia 

tiet BUea 
(In 000'*) 



l>aU.tUie 

taTftQ-pcTBo 

(in OOO'e) 



Selling Expense per ClOO of Total Expe: 



Graphic j Actual 
20 40 60 80 100 120 



Graphic 
20 40 60 60 100 120 140 160 



Hncer S12 
<12 to J16 
$16 to S24 
{24 to 552 
£■52 !c over 

(A 



$48. 92 

42,18 
60.52 
51.57 
49.26 
43.42 

54.90 



Doder $40 



Vnder '12 
J12 to J16 
J16 to t24 
524 to 552 
$52 & over 



58.79 
32.81 
44.92 
27.16 
27.54 



42.00 



Under {12 
$12 to $16 
$16 to $24 
$24 to {52 
552 at over 



42.07 
46.55 
59.06 
41.5S 

S5.se 



Total 
(Averege ) 



61.66 



5eo to tieo 



Cnder $12 
$12 to JlP 
$16 to $24 
$24 to $52 
552 & over 



58.00 
58.52 
48.59 
60.65 
68.20 



Itodor $12 


1 


$12 to $16 


5 


$16 to $24 


IS 


$24 to $52 


14 


J52 t ever 


10 



34.61 
48.29 
57.16 
60.55 
40.69 



103.3 
1CS.4 
100.7 



71.3 

79.5 
67.1 

91.6 
65.5 
65.9 



65.9 



86.0 
94.7 
79.8 
84.5 
72.3 



105.6 



118.6 
119.6 
98.9 
103.5 
119.0 



102.1 



70.7 
98.7 
116.8 
102.9 
85.2 



?;22.24 



24.81 
24.06 
25.79 
20.53 
15.61 



25.27 

27.71 
IS. 23 
S4.65 
15.98 

17.09 



■25.55 



28.05 
27.25 
21.70 
19. 6& 
18.62 



27.19 



50.55 
29.26 
26.88 
24.07 
20.79 



18.50 



15.84 
16.6S 
21.98 

19.45 
12.72 



100.0 

111.6 
106.2 
U6.0 
92.3 

€9.7 



104 



124.6 
82.0 

155.4 
71,9 

76.8 



104.9 



126.1 
122.5 
97.6 
88. P_ 
85.7 



122.5 



157.5 
lSl.6 
120.9 

10S.2' 
95.5 



74.9 

9e.e 

87.4 
57.2 



Average $48.92 



Average $22.24 



the light which it throws on the over- 
head expense in stores of different 
size, under different conditions of 
sales activities per salesman, and 
different rates of stock turnover. 
Selling expense becomes an increasing 



proportion of total expense as stores 
increase in size. By total expense is 
meant the entire expense of operation. 
Moreover, selling expense per $100 
of total expense per stock turnover 
becomes, on the whole, larger as stores 



106 



increase in size. The practical sig- 
nificance to the merchant of these and 
other conclusions to which one is led 
from analyzing Table 57 is that he 
may expect selling expense as com- 
pared to total expense to become 
larger as he increases the volume of 
his business, and may expect it to 
become smaller for a given amount 
of business as he increases the sales 
of his full-time sales-people. Both 
conditions follow when selling ex- 
penses are expressed as a part of total 
expense alone and when expressed in 
the same way per stock turnover. 

The detail in Table 57 relates to 
1919 for 269 stores. When the analy- 
sis is extended so as to cover selling 
expense of the same group of stores, 
expressed as a part of total expense 
for each $1,000 sold per full-time 
sales-person, the relation of selling 
expense to total expense, for stores of 
different size and with different 
amounts sold per person, is more 
definite. The selling expense of stores 
so classified is set out in detail in 
Table 58. For all the stores treated 
as a unit, the amount of selling ex- 
pense per $100 of total expense for 
every $1,000 sold per full-time sales- 
person was $2.42. For the stores with 
sales less than $40,000 it was $2.06; 
for those with sales of $40,000 to 
$80,000 it was $2.53; for those with 
sales of $80,000 to $180,000 it was 
$2.69 ; and for those with sales of 
$180,000 and over it was $2.16. That 
is, the amounts increase with store 
size, for stores with sales less than 
$180,000. The amounts decrease for 
the stores having sales in excess of 



this amount. It should be remem- 
bered that the amounts sold per full- 
time sales-person increase with the 
size of the store. This increase, how- 
ever, does not compensate for in- 
creased selling expense per $100 of 
total expense until the stores with 
annual sales of $180,000 and over are 
encountered. 

When the stores are classified by 
size and by the amounts sold per full- 
time person, the selling expense per 
$100 of total expense for each $1,000 
sold decreases as the amounts sold per 
person increase. For the entire group 
the amounts range from $4.14, for 
those with sales under $12,000, to 
$1.05 for those with sales of $32,000 
and over. Similar decreases occur 
for each group of stores when classi- 
fied by size. These are shown in 
graphic form in Table 58. 

In Table 58 two comparisons are 
established: First, the relation of 
selling expense to total expense for 
stores of different size and different 
salesmen's activities, and second, the 
relation of total expense per $1,000 
sold per full-time sales-person for 
stores of the same size with different 
amounts sold per person. The aver- 
ages shown serve as standards by 
which merchants may measure the 
amounts of their selling expense and 
by which they may compare their 
expenses with those of their competi- 
tors differently situated and operating 
under different conditions. 

Table 58, however, covers the year 
1919 only. In view of this fact, it is 
instructive from the same viewpoint 
to consider a group of identical stores 



107 



TABLE 58 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL EXPENSE PER $1,000 OF SALES 

PER FULL-TIME SALES-PERSON, FOR STORES CLASSIFIED BY SIZE AND BY 

AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 



Classified 

Total 
tlat Sales 


Amount of 
Saleo per 
Full-time 
Sales-person 
(in OOO'a) 


jhmber 

of 
Stores 


Selling Expense per $100 of Total Expense 


Selling Expense per $100 of Total Expense per 
$1,000 of Sales per Pull-tlme Sales-peraon 


Amoioit 

c 


Par Cent. 


Amount 
C 


Per Cent. 


(in OOO'a) 


Graphic ^^j^^i 
20 40 60 80 100 120 


SO 40 


Craphlo 
60 80 100 120 140 160 180 


Actual 




Total 
(Avorago) 


269 


$48.92 




100.0 


$2.42 


1 


100.0 










nnder $12 
{12 to {16 
$16 to $24 
524 to {32 
$32 t over 


30 
56 

105 
44 
36 


42.18 
50.52 
51.57 
49.26 
43.42 


86.2 
103.5 
105.4 
100.7 

88.8 


4.14 

5.58 
2.71 
1.79 
1.05 




Total 
(Average) 




: 


147.9 
112.0 
74.0 
43.4 




















j 
1 




Total 
(Average) 


31 


S4.S0 


71.3 


2.06 


85.1 








Onder $12 
$12 to {16 
$15 to {24 
$24 t» {32 
$32 i over 


9 

4 
7 
7 
4 


38.79 
32.81 
44.92 

27.16 
27.34 


79.5 
67.1 
91.8 
55.5 

S5.9 


5.88 
2.26 
2.26 
0.95 
0.78 


160.3 
93.4 
93.4 
39.3 
32.2 


Oader |40 




1 




■■■"■ 1 


1 

! 




Total 
(Average ) 


103 


42.00 


85.9 


2.53 


104.5 




i 






Onder 412 
$12 to $16 
{16 to {24 
$24 to {32 
{32 1 over 


16 
34 

31 
9 
13 


42.07 
46.33 
39.06 
41.33 
35.33 


86.0 
94.7 
79.6 
84.5 
72.5 


4.19 
3.21 
2.07 
1.53 

0.83 


173.1 
132.6 
85.5 
63.2 
34.3 


J40 to {80 




I 


^^^^^^^^ 




^~ 




1 

i 




Total 
(Average) 


92 


51.66 


105.6 


2.69 


111.2 




: 




Onder $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 i over 


4 

15 
50 
14 


58.00 
58.52 
48.39 
50.55 
58.20 


118.6 
119.6 
98.9 
103.3 
119.0 


5.59 
4.33 
2.55 
1.85 
1.51 


" 


$80 to {130 




; 


173.9 
105.4 
76.4 
62.4 


; 






; 






1 


i 




i 




Total 
(Average ) 


43 


49.95 


102.1 


2.16 


69.3 




1 


■ 




Under $12 
5l2 to $16 
$16 to $24 
$24 to 432 
$32 1 over 


1 
3 
15 
14 
10 


34.61 
48.29 
57.16 
50.35 
40.69 


70.7 
98.7 
116.8 
102.9 
83.2 


3.31 
3.36 
2.99 
1.63 
0.97 


136.8 
138.8 
123.6 
75.6 
40.1 


{130 & ever 












i 






— 




1 



Average ^48.92 



Average $2,42 



Pull longth not shovm 



from year to year, classified in the 
same manner. This is done in Tables 
59 to 62, inclusive. 

Table 59 shows the amoujits of 
selling expense per $100 of total ex- 



pense and per $100 of total expense 
per $1,000 sold per full-time sales- 
person for stores in the combined 
years, while Tables 60 to 62, inclusive, 
give corresponding facts for 1919, 



108 



TABLE 59 



AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL EXPENSE PER $1,000 OF SALES 
PER FULL-TIME SALES-PERSON, FOR 146 IDENTICAL STORES CLASSIFIED 
BY SIZE AND BY AMOUNT OF SALES PER FULL-TIME SALES- 
PERSON, 1919, 1918, AND 1914, COMBINED 





AmouQt of 
Sales per 
Pull- time 
Stiee-peraon 
(Id OOO'iI 


RuBbar 

of 
stores 


Sailing Erpenaa par $100 of Tot^ Bzpanoa 


Selling Expense 
$1,000 or Sales 


per $100 of Total Expense par 
per l*uU-tljna Sales-person 


Tot»l 
■at :uiei 




per Cent. 


Ajsount 


Per Cent. 


<U 000' •) 


Orapblo 1 

1 Actual 

20 40 60 80 100 120 140 160 


) 20 40 60 


Oraphlc 

DO 100 120 140 160 180 20< 


Actual 




Total 
(Average) 


438 


$50.23 


1 


lOO.O 


tJ.ll 










^^^^^^1 






ffndor $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 i over 


151 

107 

lie 

39 
23 


51.08 
50.88 
51.81 
47.45 
43.11 


101.7 
101.3 
103.1 
94.5 
85.8 


5.44 

3.71 
2.70 
1.73 
1.16 


174.9 


Total 






(AverAgo ) 










. 


j 

1 






j 


37.3 




Totnl 
(Average) 


125 


41.58 


82.8 


4.00 


128.6 




Older $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 4 over 


71 
23 
17 
10 

4 


44.45 
36.80 
42.15 

34.95 
28.43 


1 


88. 5 
73.3 
83.9 
69.6 
56.6 


5.72 
2.69 
2.22 
1.27 
0.77 


1 


183.9 
B6.5 


(tadar $40 






1 




! 


40.8 
24.3 




Total 
(Average ) 


163 


46.07 


91.7 


3.44 














Onder $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 i ovof 


63 
48 
38 
7 
7 


50.34 
45.37 
41.63 
39,65 
35.72 


100.2 
90.3 
62.9 
78.9 
71.1 


5.04 
3.29 
2.27 
1.45 
0.84 


162.1 


$40 to $80 








l^^^l^ 


73.0 

46.6 
27.0 




Total 
(Average) 


108 


50.83 


101.2 


3.07 


93.7 










USdor $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 4 over 


14 
31 
46 
12 
S 


52.04 
52.26 
50.63 
46.49 
52.09 


103.6 
104.0 
100.8 
92.6 
103.7 


5.13 
3.77 
2.67 
1.74 
1.13 


165.0 
121.2 
85.9 
55.9 
46.0 


tBO ts tlSO 














^^ 












Total 
(Average) 


42 


53.37 


106.3 


2.63 


84.6 






1 




UBder $12 
$12 to $16 
$16 to $24 
$24 to $32 

832 i over 


3 
5 

17 
10 

7 


71.91 
58.82 
55.04 
49.24 

4i.oe 


143.2 
117.1 
109.6 
93.0 
83.3 


6.87 
4.33 
2.82 
1.77 
1.15 


229.9* 

140.3 
90.7 


tlSO li ovor 


! 





















— 


37.0 







1918, and 1914, respectively. By- 
consulting Table 60 it may be seen 
that the relationships between selling 
expense and total expense, expressed 
either in the simple form or in terms 
of $1,000 sold per full-time sales- 
person closely agree with the figures 



in Table 58 based upon a somewhat 
larger number of stores for the same 
year. Moreover, the same tendencies 
that are found in Table 58 are dupli- 
cated with minor differences in Table 
60. 

In the discussion, page 36 above, 



109 



it was shoMTi that the amounts of 
selling expense per $100 of total 
expense increased between 1914 and 
1918, and 1918 and 1919. In this 
case 154 identical stores were used for 
comparative purposes. In the tables 
now under discussion, the amount in 
1918 is slightly less than in 1914, 



while the amount for 1919 is slightly 
in excess of that for 1918. The differ- 
ences, however, are small and the 
extent of agreement with the facts 
shown in Table 5 significant. The 
direction of the change from year to 
year in the amounts of selling expense 
per $100 of total expense and per $100 



TABLE 60 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL EXPENSE PER $1,000 OF SAIjES 

PER FULL-TIME SALES-PERSON, FOR 146 STORES CLuVSSIFIED BY SIZE AND 

BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 



Clas»lfl«4 


Amoimt of 
SUlos per 
tVll-tlna 
Sales-person 
(In OOO's) 


Nunber 

of 
Stores 


Soiling wcpcr.EC per ^100 of Total Expor-se 


Soiling E:cponEe per ClOO of Total Expense per $1,000 
of Sales per Pull-tlme Sales-person 


Het Salsa 
(In OOO's) 


Ajnount 


Per Cent. 




For Cent. 


Gri-phlc 1 

1 Actual 

20 40 60 BO 100 120 140 


Aflicunt 

C 


Graphic 1 

1 Actual 

20 40 60 80 100 120 140 lEO ISO 200 




Tctfl 
(Aver&Ee) 


I'^e 


;5C.90 




100.0 


$2.49 


: 


150.0 








Dnder $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 U over 


15 
30 

ei 

21 

19 


45.39 
56.29 
53.40 
49.06 
43.62 


89.2 
110.6 
104.9 
96.4 
85.7 


4.66 
4.02 
2.84 
1.78 
1.18 


187.1 
161.4 
114.1 
71.S 

47.4 


Total 






Uvortge) 








"^^^T 


i 




: 




i 

i 




Tctal 
(/,verBC«) 


14 


38.06 


74.8 


2.41 


96.8 




1 




UBder $12 

$12 to $16 
$16 to $24 
$24 to $32 
$32 tc over 


6 
X 
4 
2 
2 


36.12 
37.87 
56.67 
30.87 
28.76 


71.0 
74.4 
111.7 
60.6 
E6.5 


3.67 
2.83 
2.87 
1.16 
0.83 


147.4 
11S.7 
IIS.S 
46.« 
33.» 












i 
i 


i 
1 




Total 
(Average) 


54 


43.44 


es.3 


2.66 






■i«i^M« '^' 








Ibder tl2 
$12 to $16 
$16 to $24 
$24 to $32 
$32 k over 


e 

IS 

le 

4 

6 


46.30 
47.32 
39.49 
41.09 
36.98 


91.0 
93.0 
77.6 
80.7 

76.6 


4.63 
3.34 
2.12 
1.53 

0.90 


194.0 
134.1 
85.1 
61.4 
36.1 


$40 to $eo 


j 








1 




Total 
(Average ) 


54 


52.37 


102.9 


2.66 


114.9 










Onder $12 
$12 to $16 
$16 to $24 
tZ4 to $32 
$32 k over 


2 
11 
SO 

7 

4 


50.85 
64.79 
49.73 
47.04 

54.67 


99.9 
127.5 
97.7 
92.4 

107.4 


6.06 
4.67 
2.68 
1.77 
1.60 


204.0* 
1S7.6 
107.6 


$80 to $180 














i 






«o.e 








Total 
(Averape ) 


24 


52.28 


102.7 


2.14 


es.e 




1 


1 

i 
i 


Hoc k CTcr 


Coder $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 & over 


9 
8 

7 


58.61 
50.08 
42.08 


115.1 

ee.4 

82.7 


3.06 
1.60 
1.16 


129.7 

72.3 

4«.e 






1 











Averafio $2*49 



*rull lenjtlL DOt abon 



no 



of total expense for each $1,000 of 
sales per full-time sales-person, for the 
stores when classified by size and by 
the amount sold per person, generally 
agrees with that for the stores treated 
as a whole. It is unnecessary in this 
connection to point out the differences 
in detail inasmuch as interest now 



lies chiefly in the change from store- 
group to store-group in each of the 
years. Sufficient attention possibly 
has been given to this matter in the 
consideration of Table 58. Tables 
59 to 62, inclusive, are introduced 
largely to supplement the detail of 
the larger group of stores in Table 58. 



TABLE 61 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL EXPENSE PER $1,000 OF SALES 

PER FULL-TIME SjVLES-PERSON, FOR 146 STORES CLuVSSIFIED BY SIZE AND 

BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1918 





Aaiouct of 
Salee per 
PuIl-tUne 
Salee-.p*sroon 
(In OOO'e) 


Ntunber 

of 
Sfcoree 


Selling expense per $100 of Total Sxpeaee 


Selling Expense 
$1,000 of Sale 


per $100 of Total Expenee per 
3 per Pull-tlr.e Salee-poraon 


Total 
■at Salas 
(to OOO's) 


Amount 


Per Cent. 


Amount 


Per Cent. 


Graphle 1 4<.tyaj 
!) 20 40 60 80 100 120 140 


3 20 40 


Graphic 
60 60 100 120 140 160 180 


Actual 




Total 
(Average ) 


146 


$49.39 






100 .0 


$3.16 




100. 










Qnder $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 ft over 


60 
42 
47 
14 
3 


49.33 
49.97 
50.77 
43.12 
38.24 


100.0 
Ifil.8 

U1S.8 
67.3 
77.4 


4.66 
3.73 
2.56 
1.58 
1.02 


153.8 
118.0 
81.0 
50.0 
32.3 








(Average ) 












! 






— 








Total 
(Average ) 


40 


41.79 


64.6 


3.53 


111.7 










Cader $^^ 
$12 to $16 
$16 to $24 
$24 to $32 
$32 * over 


21 

7 

s 
s 

2 


46.44 

35.48 
41.58 
54.87 
27.54 


94.0 
71.8 
84.2 
70.6 
55.8 


5.33 
2.63 
2.21 
1.24 
0.69 


158.7 
83.2 
69.9 
39.2 
21.8 


Ttader $40 






j 




^^M 




■■■■ 

I 




Total 
(Average 1 


61 


45.89 






92.9 


3.48 


110. 1 












Onder $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 k over 


24 
20 
15 
2 


50.47 
44.64 
41.97 
24.33 


102.2 
90.4 

85.0 
49.3 


4.76 
3.29 
2.30 
0.36 


150.6 
104.1 
72.8 

27,2 


$40 to $S0 
















— 


i 




Total 
(Average ) 


32 


43.71 




1 


98.6 


2.86 


90.5 










Cbder $12 
$12 to $16 
$16 to ^4 
$24 to $32 
$32 Jc over 


5 
11 
10 

S 

1 


50.19 
45.68 
53.48 
46.01 
41.25 


101.6 
92.5 

108.3 
93.2 
83.5 


4.47 

3.24 
2.66 
1.71 
1.14 


141.5 
102.5 
84.2 
54.1 
36.1 




















i 












Total 
(Average) 


13 


53.1c. 




107.6 


2.96 


93.7 




' 




$1B0 & over 


Older $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 & over 


4 
7 
S 


59,60 
S1.83 
43.25 


120.7 
10 4'. 9 
87.6 


- 
4.69 
2,56 
1.57 


148.4 
81.0 
49.7 




• 


^^^^^^^^ 






i 







Average $49.39 



Average $3.16 



111 



TABLE 62 



AMOUNT OF SCLLING EXPENSE PER $100 OF TOTAL EXPENSE PER $1,000 OF SALES 

PER FULL-TIME SALES-PERSON, FOR 146 STORES CLu\SSIFIED BY SIZE AND 

BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1914 





Ancunt or 
Sales per 

- I^ill-tln* 

Salos-perBOB 

(in ooo'o) 


Katbor 

of 
Stores 


Selling Expense per ^00 of Total Expense 


Selllne Eicponso per ClOO or Total Eiponse por 
$1,000 or. Sales per Pull-tlT.e Sales-person 


Tot«l 
let Sales 


Ar.ount 


Per Cent. 


Aniount 


Per Cent. 




""Pl"" 1 Actual 
5 20 ^0 CO eo 100 120 140 160 


Graplilo 
5 20 40 60 80 100 120 140 160 


Actual 




Totil 
(Average } 


146 


$50.18 




100.0 


J4.13 




100.0 






: 




Dadar $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 & over 


66 
95 
20 

4 
1 


52.74 
48.77 

46.04 
42. S5 
20. IJ 


105. 1 
97.2 
91.7 
85.6 
40.1 


5.88 
3.47 
2.47 
1.5' 
0.53 


133.0 
78.5 
55.9 
35. S 

12.0 






^^^^ 


(Avorage ) 




' 









Total 
(Average) 


71 


42.12 


83.9 


4.68 


105.9 










Under $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 k over 


45 

IS 
8 

S 


44.36 
37.54 
55. JO 
37.61 


88.4 
74.8 
70. S 
75.0 


6.17 
2.72 
1.90 
1.40 


139.6 
61. S 
43.0 

"Sl.T 


VaatT $40 


^^^ 






1 




Total 
(AverBgo) 


46 


48.62 


96.9 


4.32 






i 




' 




Dndor $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 1 over 


31 
10 
5 

1 
1 


51.22 
44.20 
47, M 
46.49 
20.13 


102.1 
88.1 
94.3 
92.6 

40.1 


5.31 
S.22 
2.69 
1.63 
0.5J 


120.1 


$40 to (eo 








60.9 








—■ 


12.0 




Totol 
(Average) 


22 


50.60 


100.8 


3.92 


88.7 






; 




Dndor }12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 i over 


7 
S 
6 




105.6 
97.3 
99.2 


5.47 
3.69 
2.59 


123.8 

ei.2 


(80 to $180 


52.99 




^i^ 






1 




- 


^^^^^ 






Total 
(Average) 


S 




120.2 


4.69 


106.x 




GO. 33 








Dndor $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 k over 


3 

1 
1 




14J.3 
114.2 
63.0 


6.87 
3.82 


165k* 
86.4 








: 


$180 & over 






^^*'*'''' 




- 







Average $50.18 



C. — Yearly Amounts of Sellhig 
Expense per $100 of Total Net 
Sales and per $100 of Total 
Expense, for Stores Classified 
hy Size and hy Size of City in 
Which Located* 1919. 

* Population figures are for 1920, 



In Tables 10 to 14, inclusive, it is 
shown that the amounts of selling 
expense per $100 of total net sales for 
stores of a given size are higher in 
large than in small cities. For the 
stores having annnal sales of $40,000 
to $80,000 in the respective city- 



112 



groups, the amounts in 1919, as shown 
in Table 10, are $6.89 and $8.66. It 
is now desired to make some furtlier 
comparisons of selling expense for 
stores with a given amount of sales, 
but with different location. This is 
done in Tables 63 to 66, inclusive. 

In Table 63, 103 stores with annual 
sales of $40,000 to $80,000 in 1919 
are classified according to location 
and the amount of sales per full-time 
sales-person. The average amount of 
selling expense per $100 of total net 
sales for the 89 stores in the small 
cities was $7.34, while for the 14 
stores located in large cities it was 
$8.46. That is, it cost per $100 of 



total net sales $1.12 or 15 per cent, 
more to sell goods in stores in the 
large than in stores in small cities. 
Moreover, the stores in the small cities 
have an advantage even when the 
amount sold per salesman remains the 
same. To illustrate: The selling ex- 
pense per $100 of total net sales for 
the 29 stores located in small cities, 
with an average size of $56,780, and 
with sales per sales-person of $12,000 
to $16,000, was $8.48. For the 5 
stores with similar characteristics, 
with an average size of $62,953, but 
located in the larger cities, the cor- 
responding amount was $9.33. Too 
much ought not to be made of these 



TABLE 63 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER STOCK TURNOVER, 

FOR STORES WITH SALES OF $40,000 TO $80,000, CLASSIFIED BY SIZE OF 

CITY AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 



Selling Expense per SIOO of Total Net Sale 



20 40 60 60 100 120 140 



Per Cent, 



20 40 60 80 100 120 140 160 180 200 



Total 
{Average ) 



Under $12 
$12 to S16 
516 to $24 
$24 to $22 
$32 & over 



(Ave 



Under Sl2 
.•12 to fl6 
Cl€ to C24 
J24 to 532 
$32 & ever 



(Av 



tal 
rage) 



Under $12 
$12 to $16 
$16 to $24 
$24 to $32 
t32 i over 



$7.60 



9.04 
8.62 
6.58 
1.18 
6.06 



7.34 



9.41 
8.48 
6.51 



9.33 
7.27 
9.99 
6.21 



100.0 



120.6 
114.9 
87.7 
95.7 
67.6 



97.9 



126.6 
113.1 
86.8 



112.0 



83.5 
124.4 
06.9 



$3.41 



5.32 
4.10 
3.29 
2.99 
1.81 



4.32 



6.27 
4.99 
3.83 
3.12 



4.03 



3.91 
4.66 
2.94 
4.00 
3.88 



Average C7.50 



Average 03.41 



100.0 



166.0 
120.2 
96.5 
87.7 
53.1 



126.7 



183.9 
146.3 
112.3 
91.5 
71.6 



114.7 
156.7 



117.3 
113.8 



113 



differences "\vben the amounts are 
based upon a few stores, yet, when 
they are preponderantly one way, as 
they are in the table, the results 
shown by even a few stores become 
significant. Within each city-group, 
the amounts of selling expense per 
$100 of total net sales decrease as the 
amounts sold per salesman increase, 
the continuity of the decrease being 
unbroken for the stores in the small 
cities and, in spite of the fewer stores, 
interrupted at only two places for 
the stores in the large cities. 

In the analysis of selling expense 
for these stores, however, use may be 
made of another and more refined 
unit ; that is, selling expense per $100 
of sales per turnover. When all the 
stores, taken as a unit, are compared 
in this way, those in the small cities 
which had an advantage when selling 
expense is measured in sales alone, 
are now at a disadvantage, as com- 
pared to those in the large cities. 
Relatively, the amounts of selling 
expense in terms of sales and stock 
turnover for the two groups stand in 
the relation of 107 to 100, the actual 
amounts being $4.32 and $4.03. This 
means that rapidity of turnover for 
the stores in the large cities more than 
compensates for their larger selling 
expense in terms of sales. Such a 
condition also holds for three of the 
groups of stores having the same 
amounts sold per salesman, but with 
different location. In two groups an 
inverse condition obtains. Moreover, 
as the amounts sold per sales-person 
increase, the decline in selling ex- 
pense is more rapid when measured 



in terms of sales per turnover than 
when expressed in sales alone. 

The practical significance of the 
foregoing condition seems to be: 
First, that merchants doing a given 
amount of business have lower 
amounts of selling expense in terms 
of sales in the small, than in the large 
cities, but that they have higher ex- 
penses when they are measured in 
sales per turnover. Second, that for 
a given amount of annual sales, stores 
located in small cities may reduce 
the selling expense per $100 of sales, 
and per $100 of sales per stock turn- 
over, respectively, from $9.41 to $4.88, 
and from $6.27 to $2.44 by increasing 
annual sales per salesman from an 
amount less than $12,000 to $32,000 
and over. 

Table 64 is similar to Table 63. 
The same stores are included and the 
method of grouping them is identical. 
The only additional feature of the 
table is that the unit of expense is 
expressed in terms of sales for each 
$1,000 sold per full-time sales-person. 
It is unnecessary to repeat what has 
been said concerning the comparative 
advantages, with respect to the rela- 
tion of selling expense to sales, of the 
two groups of stores differently lo- 
cated. When the amounts of selling 
expense are expressed in terms of 
sales for each $1,000 sold per full- 
time sales-person, the stores in the 
small cities retain their advantage, 
but one less marked than that which 
characterizes them when selling ex- 
pense is related to sales alone. 

The possibilities of reducing the 
amounts of selling expense per $100 



114 



TABLE 64 

AMOUNT OP SELLING EXPENSE PER $100 OF TOTAL NET SALES PER $1,000 OF SALES 

PER FULL-TIME SALES-PERSON, FOR STORES WITH SALES OF $40,000 

TO $80,000, CL.VSSIFIED BY SIZE OF CITY AND BY AMOUNT 

OF SALES PER FULL-TIME SALES-PERSON, 1919 



su« 

or 

Ctt7 


Amount of 
SeloB per 
PiU-ti™ 
Sftleo-porson 
(In OOO'e) 


Number 

of 
Stores 


Selling Expense par $100 of Total 
net Sales 


Selllne Ebrpense per $100 of Total liet Sale= per 51,000 
of Sales per Pull-tire Sal-s-person 


Amount 


Per Cent. 


Amount 


Par Cent. 


(In 000'») 


^""""^ |Aetu«l 
20 40 60 80 100 120 140 


3 20 40 60 80 100 1?0 140 160 180 200 220 




Total 
(Average) 


103 


47.50 




100.0 


%.45 


'• 


IM.O 










Undor $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 * over 


16 
34 
31 
9 
13 


9.04 

a. 62 

6.59 
7.13 
5.06 


1L0.5 
114.9 
87.7 
95.7 
67.5 


0.90 
0.60 
0.3'. 
0.27 
0.12 


200.0 
133.3 
77.9 
60.0 
26.7 




1 




(iver&gttX 










^^M * 








Total 
(Average) 


89 


7.34 


97.9 


0.45 


100.0 










Under $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 f< over 


14 
29 
29 
6 

11 


9.41 

8. 48 
6.51 
5.62 
4.88 


125.5 
113.1 
86.3 
■74.9 
65. 1 


0.93 
O.09 
0.35 

o.r;u 
0.12 


206.7 
131.1 
77.9 
46. T 
26.7 








40 










^ i 




Total 
(Average ) 


14 


8.46 


112.8 


0.48 


106.7 






! 




Onder $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 4 over 


2 

5 
2 
3 
2 


6.26 
9.33 
7.27 
9.99 
6.21 


83.5 
124.4 

96.9 
133.2 

82.3 


0.66 
0.63 
0.35 
0.38 
0.14 


146./ 








ever 
























' ■■ 





of total net sales per $1,000 sold per 
full-time sales-person by stimulating 
sales per salesman are shown by 
amounts in the part of the table 
bearing that caption. 

The effect of store location and the 
amounts of goods sold per full-time 
sales-person on selling expense may 
be shown also by expressing selling 
expense in terms, first of total ex- 
pense, and second of total expense 
per stock turnover. This is done in 
Table 65, which includes the same 
stores as those studied in Tables 63 
and 64. 

Out of each $100 of total expense, 
selling expense constitutes $42.58, for 



the stores in small cities, and $39.30 
for the stores in the large cities. 
That is, selling expense in relation to 
total operating expense is high in the 
stores in the small, and low in the 
stores in the large cities. Relatively, 
however, the advantage accruing to 
the stores in the large cities is less 
when selling expense is expressed in 
relation to total expense alone than 
when given in terms of total expense 
per stock turnover. 

When the stores are classified by 
the amount sold per sales-person, the 
amounts of selling expense per $100 
of total expense decrease as the 
amounts so sold increase, the direction 



115 



TABLE 65 



AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL EXPENSE PER STOCK TURNOVER, 

FOR STORES ^VITH SALES OF $40,000 TO $80,000, CLASSIFIED BY SIZE OF CITY 

AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 





Aaount Qt 
bales per 
Pull-tine 
SaJat-person 
(Is OOO'd 


Ihnber 

of 
Store e 


eelUng Expense per }100 of Total -jtoiso 


Selling Ejcpense per tlCC of Total txpeiiso 
per Stock ^omover 


or 

CltJ 


Ascont 

< 


Per Cent. 


Anount 

c 


Per Cent. 


(IB OOC'l) 


Graphle Actual 
2C 40 60 80 100 120 140 


Oraplilo j Actual 
20 40 60 80 100 120 140 




Total 
(ATorage) 


103 


$42.00 




100.0 


{23.53 




100.0 










aider $12 
$12 to $16 

$16 to |24 
$24 to $32 
$32 i OTor 


16 
34 

31 
9 

15 


42.07 
46.33 
S9.06 
41.33 
33.38 


100.2 
110.3 
95.0 
98.4 
84.2 


28.05 
27.25 
21.70 
19.68 
18.62 


120.2 

116.8 
93.0 
84.4 
79.8 


Total 






(AverAgo) 


























Total 
(Average) 


88 


42.38 


101.4 


25.05 


107.4 










Onder $13 
$12 to $16 
$16 to $24 
C24 to $32 
$32 i over 


14 
29 
29 
6 
U 


43.68 
47.88 
89.97 
34.42 
■ 36.04 


104.0 
114.0 
95.2 
82.0 
8S.S 


29.12 
28.16 
S3. 51 
19.12 
18.02 


124.8 
120.7 
100.8 
82.0 




I II 




40 
















i 










Totnl 
(Average) 


14 


39.30 


93.6 


18.71 


80.2 






: 




ttailer $12 
$12 to $16 
$16 to tS4 
$24 to $32 
$32 «c over 


2 
6 
2 
3 
2 


29.78 
40.15 
31.78 
51.86 
52.41 


70.9 
95.5 
75.7 
123.5 
77.2 


18.61 
20.07 
9.63 
20.74 
20.26 


79,8 






ovor 


1 


— 


41.3 
88.9 
66.8 











Average $42.00 



ytvorage $23.^ 



and consistency of change being more 
marked for the stores in the small 
than for those in the large cities. It 
is readily seen that such a decrease 
should occur because, for a given 
amount of business, the larger the 
amount sold per person, the fewer are 
the salesmen which are needed and 
the less, absolutely and relative to the 
total expense, is the selling expense 
incurred. 

Rather more distinct tendencies in 
the direction of change in selling 
expense in relation to total expense 
for this group of stores are revealed 



when the amounts are expressed per 
unit of stock turnover. Such amounts 
are found in the right-hand part of 
Table 65. The stores in the small 
cities offer better means for compari- 
son because the number involved is 
larger. For the stores in which the 
amount of sales per full-time sales- 
person was less than $12,000, the 
average amount of selling expense per 
$100 of total expense per stock turn- 
over was $29.12. For those with sales 
of $32,000 and over, it was $18.02. 
Between these limits, the amounts de- 
crease as the amounts sold by sales- 



116 



men increase. For the group of stores 
in the large cities, the direction of 
change in the amounts is inconclusive. 
Another method of stating the 
amounts of selling expense in these 
103 stores classified by location and 
amounts sold per salesman may be 
used to advantage. In Table 66 the 
amounts of selling expense per $100 
of total expense for each $1,000 sold 
per full-time sales-person are shown 
for the stores classified as in Table 65. 
The bases of classification of the stores 
are location and amounts sold per 
salesman. The amounts of selling ex- 
pense in terms of total expense alone 



for the stores thus classified are more 
fully comparable from group to group 
when they are put on a $1,000 basis. 
Thus expressed, they are shown in the 
right-hand column of Table 66. 

Stated in this form, the amounts for 
stores in the small cities are relatively 
high and for those in the large cities, 
relatively low. That is, they stand 
in the same position as do those when 
the unit of measurement is total ex- 
pense alone. Within each city-group 
they decrease as the sales per full- 
time sales-person increase, the abso- 
lute and percentage reductions in the 
small and large city-groups being, re- 



TABLE 66 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL EXPENSE PER $1,000 OF SALES 

PER FULL-TIME SALES-PERSON, FOR STORES WITH SALES OF $40,000 TO 

$80,000, CLASSIFIED BY SIZE OF CITY AND BY AMOUNT OF 

SALES PER FULL-TIME SALES-PERSON, 1919 



sic* 

of 
city 


Amount of 
Sales per 
Full-tlno 
Sales-person 
(In 000'«) 


Matibcr 

or 
Storee 


Selling Expense per $100 of Total Expense 


Selling Expem 

$1,000 of Sa 


e per $100 of Total Expcnae per 
es per Full-time Salee-pereon 


Aaonnt 


Per Cent. 


Amount 
( 


Per Cent. 


(t» OOO'e) 


^'•='^'^"'- 1 Actual 
5 20 40 60 80 100 120 140 


) 20 40 


Graphic 1 . . , 
1 Actual 

60 80 100 120 UO 160 180 




Toinl 
(Average) 


103 


J42.0P 




100.0 


J2.53 




100.0 










Under Cl2 
;i2 to S16 
tl6 to $24 
$24 to $32 
$32 it over 


16 
54 
31 
9 
IS 


42.07 
46. So 
J9.C6 
41.33 
35.38 


100.2 
110.3 
93.0 
98.4 
84.2 


4.19 
3.21 
2.07 
1.53 
0.63 


165.6 
126.9 
81.8 
60.5 
52.8 








(Avorags) 










"^ 


■ [ 












Total 
(Average) 


89 


42.58 


101.4 


2.59 


102.4 






! 




Under $12 
$12 to $16 
$1£ to $24 
J24 to 432 
$32 4 over 


14 
29 
29 
6 

U 


43.68 
^47.68 
39.97 
54.47 

36.04 


104.0 
114.0 
95.2 
62.0 
65.8 


4.31 

3.32 
2.13 
1.26 
0.86 


170.4 
131.2 
84.2 
49.8 

54.0 


Chdor 
40 














^^ 


; 




40 acd 
OTor 


Total 
(Average) 


14 


39.30 


93.6 


2.23 


88.1 


1 


.; 


Ondor $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 k over 


2 
S 

2 
3 
2 


29.78 
40,13 
31.78 
51.86 
32.41 


70.9 
96.5 
75.7 
123.5 
77.2 


3.14 
2. 73 
1.52 
1.96 
0.71 










107.9 
60.1 

77. S 
28.1 








-» 










Avcra{;e $42 .00 

117 








Average $2.53 





spectively, $3.45 or 80 per cent, and 
$2.43 or 77 per cent. 

D. — Summarxj. 

(1). The amounts of selling ex- 
pense per $100 of total net 
sales for each $1,000 sold per 
full-time sales-person, and per 
$100 of total expense for each 
$1,000 sold per full-time sales- 
person decreased between 
1914 and 1918, and 1918 and 
1919. This condition holds 
for all stores and also for 
stores classified by size and 
by amount of sales per full- 
time sales-person. 

(2). For stores of a given size, 
the amounts of selling ex- 
pense in terras of sales, of 
sales per stock turnover, and 
of sales per $1,000 sold per 
full-time sales-person, de- 
crease as the amounts sold by 
each sales -person increase. 
This condition holds for stores 
in both small and large cities. 

(3). For stores with a given 
amount of sales per full-time 
sales-person, selling expenses 
in terms of sales alone, in 
terms of sales combined with 
stock turnover, or in terms of 
the amount sold per full-time 
sales-person, increase as the 
size of the store increases. 

(4). For stores of a given size, the 
proportions of total expense, 
attributable to selling de- 
crease as the amount sold i3er 
salesman increases. This is 



true when selling expense is 
measured in terms of total 
expense alone, and when com- 
bined with stock turnover or 
$1,000 of sales per full-time 
sales-person. 

(5). For stores with a given 
amount of sales per sales- 
person, the amounts of selling 
expense in terms of total ex- 
pense, in either the single or 
combined units, increase with 
the size of the stores. 

(6). For stores of a given size, the 
average amount of selling ex- 
pense in terms of sales per 
stock turnover is higher for 
stores in small than for those 
in large cities. The amount in 
terms of sales per full-time 
sales-person also is higher for 
the stores located in large 
cities. 

(7). For stores of a given size, the 
average amount of selling ex- 
pense, in terms of total ex- 
pense combined with either 
stock turnover or the amount 
sold per sales-person, is 
higher for stores in small 
than for those in large cities. 

(2) — YEARLY AMOUNTS OP SELLING 
EXPENSE IN RELATION TO THE 
METHODS BY WHICH SALESMEN 
ARE PAID. 

In the search for an explanation of 
the conditions which account for high 
or low selling expense, an analysis 
has been made of the expenditures 



118 



TABLE 67 



AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER STOCK TURNOVER, 

FOE STORES CLASSIFIED BY SIZE AND BY METHOD OF PAYING 

REGULAR SALESMEN, 1919 



CUoslflod 

Tot»l 
Kst Ssloa 


Ksthod 

of 

COE^onflatloD 


Number 

of 
BtorOB 


Soiling Expenao per JlOO of Total 
IJet Saloa 


Selling Bipense per tlOO of Total Hot 
Sales per Stock TxuTiover 


Amount 


Per Cent. 


Anoxmt 


F«r Cent. 




°^"^"° 1 Actual 
D 20 40 60 80 100 120 


■^"P"' 1 Actual 
5 20 40 60 80 100 120 140 




Total 
(Average) 


254 


♦9.75 




100.0 


t4.64 




100.0 








Total 
Uv«rag«) 


Straight Salary 
Salary 4 Connlsalon 


197 
57 


9.21 
10.79 


94.5 
110.7 


4.61 

4.50 


99.4 




^^^^^1 




i 


i 






Total 
(AvoraRO ) 


za 


6.09 


62.5 


4.06 


87.5 




; 


Under *40 


Stralgtt Ealary 
Salary 4 ConmlsBlon 


25 
5 


5,85 
7.00 


60.0 
71.8 


1.90 
4.67 


84.1 

100.6 








> 




Total 
(Average) 


97 


7.55 


77.4 


4.19 






1 




t40 to (80 


Straight Ealary 
Salary & Comnlaslon 


85 
12 


7.65 
6.95 


78.5 
71.3 


4.25 
3.86 


91.6 




! 




1 


• 






Total 
(Average ) 


89 


10.03 


102.9 


5.28 


113.8 








Sao to {ISO 


Straight Salary 
Salary 4 Coranlsalon 


65 
24 


9.55 
11.24 


97.9 
115. J 


4.78 
6.24 


103.0 
134.5 












; 




Total 
(Average) 


40 


10.66 


109. S 


5.95 


65.1 






; 


$130 & o7or 


Straight Salary 
Salary & ComnilBBlon 


24 

15 


10. 2 J 
11.12 


104.9 
114.1 


4.09 
S.S9 


68.1 
77.4 










•• 



Average (9.75 



Average (4.61 



for this purpose in 1919 for 254 stores 
classified by size and by the methods 
by which salesmen are paid. Two 
methods of compensation are distin- 
guished for purposes of study. The 
stores are classified, first, into those 
which use only straight salaries in 
contrast with those in which salaries 
and commissions are employed; and 
second, into those which pay or do 
not pay some form of bonus. The 
tables bearing upon each of these 
methods of payment contain the re- 
sults of our findings on the relative 
size of the amounts of selling expense 
expressed in different units. 



A. — Yearly Amounts of Selling Ex- 
pense per $100 of Total Net 
Sales and per $100 of Total Ex- 
pense, for Stores Classified by 
Size, 1919. 

The total amount of wages and sal- 
aries properly chargeable to selling, 
on the average, constituted in 1919, 
63 per cent, of total selling expense.* 
Accordingly, in the comparisons im- 
mediately following, any effect which 
the methods of compensation might 
have on total selling expense would 
be restricted by this fact. In spite 

* Table 178, p. 259. 



119 



TABLE eS 



AMOUXT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER $1,000 OF SALES 

PER FLTLL-TIME SALES-PERSON, FOR STORES CLASSIFIED BY SIZE AND 

BY METHOD OF PAYING REGULAR SALESMEN, 1919 





Method 

of 

CosporJatlon 


Smut or 

of 
Storaa 


sailing anDsnio per SlCO of 
Total Net ialoa 


Soiling Expense per $100 of Total Set Saloa per 
Jl.OOC of Salea per Pull-tUao Salea-porson 


Total 


Aaount 


Per Cent. 


Aaount 

C 


Per Cent, 


(In OOO't) 


*-"!*l'' Actual 

J 20 40 60 80 100 120 


'^^^'^o 1 Actual 

20 40 CO 80 100 120 




Total 
(Avtrr.cs) 


354 


«9.-75 




ico.o 


JO. 48 


'■ 


100.0 






1 


Tt^til 
(r.v:r»g» ) 


Straight Salary 
Salary fc ComiMlon 


197 
57 


9.21 
10.79 


94.5 

110.7 


0.45 
0.53 








110.4 




i 

i 

i 


i 




Total 
(Averago) 


28 


6.09 


C2.5 


0.34 


70.8 


Ur.der $40 


Straight Salary 
Sfilary fc ConTT^aslon 


23 

5 


5.65 
7.00 


CO.O 
71. S 


0.J5 
0.28 


72.9 
58.3 




Total 
(AvcrsEo) 


97 


7.55 


77.4 


0.46 


95.8 




1 




Straight Salary 
Salary fc Corr^aalon 


85 
12 


7.65 
6.95 


73.5 
71. J 


0.46 
0.45 


95.3 
93.7 






1 




i 




Total 
(Average) 


89 


10.03 


102.9 


0.52 


103.3 










StrolBht Salcry 
Salary i Corr-.laslon 


65 
24 


9.55 
11.24 


97.9 

115.3 


0.50 
0.55 


104.2 
114.6 


$80 to OlSO 














Total 
(Average) 


40 


10.66 


109.3 


0.45 


93.7 




i 


1 




Straight Salary 
Salory i OorTilaslon 


24 
16 


10.23 
11.12 


104.9 
114.1 


0.39 
0.52 


81.2 
106.3 




















Average $9.75 






Average Jo. 43 





of this, however, it has been thought 
worth-while to make such compari- 
sons at this place and to reserve for 
a later section the discussion of the 
relation of wages and salaries to total 
net sales and to total expense for 
stores using different methods of 
compensating their employees. 

In Tables 67 and 68 the amounts 
of selling expense in terms of net 
sales, in terms of net sales per stock 
turnover, and in terms of net sales 
for each $1,000 sold per full-time 
sales-person, for stores classified by 
size and by method of compensating 
regular salesmen, are set out in detail. 
Without reviewing the amounts in 



these tables, item by item, it may be 
of interest briefly to summarize them 
and to generalize upon the results 
secured. 

In Table 67, for three of the four 
groups of stores, when classified by 
size, the amounts of selling expense 
per $100 of total net sales are lower 
for stores which pa>" their employees 
on a straight salary basis.* The dif- 
ferences in amounts, moreover, can 
hardly be attributed to the size of 
the stores involved. It will be re- 
called, of course, that the amounts of 

* The averages which are low are under- 
lined in this and the following tables re- 
lating to this subject. 



120 



TABLE 69 



AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL EXPENSE PER STOCK TURNOVER, 

FOR STORES CLASSIFIED BY SIZE AND BY METHOD OF PAYING 

REGULAR SALESMEN, 1919 





Metbod 

of 

CoBpenaatlon 


Ihanber 

of 
Stores 


Selling Expense per ClOO of Total Expense 


Selllne 


Expense per ClOO of Totol txponso 
per Stock Turnover 


Total 
Ket Sales 
(In 000' 6) 


AjTTOunt 


Per Cent, 


Amount 


Per Cent. 


"'•"P"" Actual 
3 20 40 60 80 100 120 


"^»f"^« Actual 
J 20 40 60 80 100 120 liO 




Total 
(Average ) 


254 


t47.47 




100.0 


$22.60 


i 


100.0 




i 




Total 
(Average ) 


Straight Sadarj 
Salary 4 CoTWOlBslon 


197 

57 


45.89 
50.27 


66. 7 
105.9 


22.95 
20.95 


101.5 
92.7 




; 




1 


i 




Total 
(Average) 


28 


56.26 


76.4 


24.17 


106.9 




! 


Under $40 


Straight Saaary 
Salary & Coimnlsslon 


25 
S 


55.61 
58.56 


75.0 
81.2 


2S.7^ 
25.71 


105.0 
113.8 








; 


i 




Total 
(Average) 


97 


42.50 


89.1 


23.60 


104.0 




[ 




$40 to tao 


Stralglit Salary 
Salary & Coiranlsaion 


85 
12 


42.77 
59,2^ 


90.1 
82.7 


23.76 
21.80 


105.1 
96.5 




i 
i 




i 




Total 
(Average) 


89 




108.4 


27.08 


119.8 










ieo to tiso 


Straight Sajary 
Salary & CoBBnlaslon 


65 
24 




106.5 
115.1 


25.24 
29.85 


111.7 
132.0 














i 






Total 
(Average) 


40 




99.1 


17.42 


77.1 








! 


$180 & over 


Straight Salary 
Salary k ComlMion 


24 
16 




95,5 
105.5 


17.72 

18. la 


78.4 
71.5 










50.06 












Ave]-age t47.47 






Average $22.60 





selling expense per $100 of total net 
sales increase as stores increase in 
size. But the differences in the size 
of the stores in these cases are not 
sufficient to explain the differences in 
the amounts. 

When the amounts of selling ex- 
pense per $100 of total net sales for 
these stores are found per stock turn- 
over, in two of the groups the amounts 
are lower for stores using straight sal- 
aries, and in two they are lower for 
stores using salaries and commissions. 

When the amounts of selling ex- 
pense per $100 of total net sales are 
expressed in terms of each $1,000 sold 



per full-time sales-person, as in 
Table 68, two of the groups of stores 
show smaller selling expense where 
straight salaries predominate and 
two, smaller selling expense where 
salaries and commissions are used. 
The results of this comparison are 
negative as to any effect which differ- 
ent methods of compensating em- 
ployees may have on selling expense. 
In Tables 69 and 70 the amounts of 
selling expense, for stores classified as 
in Tables 67 and 68, are shown in 
terms of total expense alone, in rela- 
tion to total expense per stock turn- 
over, and in relation to total expense 



121 



TABLE 70 



AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL EXPENSE PER $1,000 OF SALES 

PER FULL-TIME SALES-PERSON, FOR STORES CLASSIFIED BY SIZE AND BY 

METHOD OF PAYING REGULAR SALESMEN, 1919 



Iot«l 
Hat £*!«• 


UethoO 

or 

Ccxpeneatlon 


Itur.ter 

of 
Etorea 


Selling &cpenae per $100 of Total 


Expense 


Selling Expeiieo per ClOO ci total Expense per 
$1,000 of Sales per P-ill-tJne Salee-poreon 


Ajncnjnt 


fer Cer.t. 


An cunt 


Per Cent. 


(in O0O'«> 


Oraf.hlc 

D £0 40 60 80 100 J20 


Actual 


Grapiilc 1 

Actr.al 
D 20 40 60 00 100 ICO 




Tott.1 
(AverBge) 


254 


$47.47 




loc.o 


$2.34 




100.0 




i 




To-.ul 


Strale^t Salary 
SalLry fc Ccmnlcslcii 


197 

57 


45.89 
50.27 


0C.7 
ICG. 9 


2.27 
2.46 


97.0 
104.7 


(Average ) 














Tetil 
(AveroEe) 


SB 


56.26 


76.4 


2.04 


87,2 




j 


■ 


TJD£er $40 


Etmlsbt Salary 
Salary & Cornnloslon 


2S 


is.ei 

38. S6 


75.0 
81.2 


S.IS 
1.53 


91.9 
65.4 




1 








Tctal 
(Avcrtce) 


97 


42.50 


69.1 


2.59 


110.7 








$40 to $80 


Straight Salary 
Salary fc ConnlESIon 


65 
12 


42.77 
39.24 


90.1 
82.7 


£.60 
2.52 


111.1 

107.7 
















Total 
(Average) 


E9 


sa.46 


ioe.4 


2.65 








i 




{80 to tieo 


Stralgjit Salary 
Salary & CoTwilealon 


•es 

24 


50.48 
5S.£9 


loe.o 

113.1 


2.65 
2.64 


115.2 
112.8 










1 




Total 
(Avorage) 


40 


47.03 


99.1 


1.99 












Jieo i o«r 


Stralfjit Salsrj 
Salary t CoiwilBslon 


24 
16 


44.31 

50. C6 


93.3 
105.5 


1.68 
2.35 








100.4 







; 



£M0r^9 $47.47 



Avorago ^.34 



for each $1,000 sold per full-time 
sales-person. Summarizing these 
tables briefly, it may be observed that, 
in terms of total expense, the amounts 
of selling expense are lower for stores 
using straight salaries in three of the 
groups classified by size. In one 
group an inverse condition obtains. 
When the amounts of selling expense 
per $100 of total expense per stock 
turnover are determined, two of the 
groups of stores show the amounts to 
be less when straight salaries are used 
and two groups show them to be less 
when salaries and commissions obtain. 
That is, in terms of this unit alone 
the results are inconclusive. 



When the amounts of selling ex- 
pense per $100 of total expense are 
shown for each $1,000 sold per full- 
time sales-person, as in Table 70, 
three of the groups of stores show 
the amounts to be less w-hen salaries 
and commissions are employed and 
one where straight salaries predom- 
inate. 

From the above tables the evidence 
of a definite relation between the 
methods of compensating employees 
and the amounts of selling exjiense 
seems confllicting. However, this is not 
the case, as is clear from the following 
summary, when all of the group aver- 



122 



ages are considered together:* First, 
the amounts of selling expense per 
$100 of total net sales and per $100 
of total expense are lower where 
straight salaries are used in six out of 
the eight cases. In two instances the 
amounts are lower where salaries and 
commissions predominate. Second, in 
four cases out of eight they are lower 
for stores using straight salaries when 
the amounts are expressed in terms of 
sales per turnover and total expense 
per turnover, while in three of the 

* The averages which are low are under- 
BCored in Tables 67 to 70, inclusive. 



eight cases they are lower for straight 
salaries when the amounts are ex- 
pressed in terms of sales, and in terms 
of total expense per $1,000 of sales 
per full-time sales-person. Obviously, 
the connection between the method of 
paying salesmen and the amounts of 
selling expense is best measured in 
terms of sales or total expense. The 
conditions affecting turnover and the 
amounts sold per sales-person are so 
varied as to make comparisons in 
such units of comparatively little sig- 
nificance in this connection. The 
amounts are expressed in these more 



TABLE 71 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER STOCK TURNOVER, 
FOR STORES PAYING OR NOT PAYING A BONUS TO REGULAR SALES- 
MEN, CLASSIFIED BY SIZE OF STORE, 1919 





■sthod 

of 

Coiqpeiisatloo 


Humbar 

of 
Stores 


Selling Expense per ♦lOO of 
Total Het Sales 


SellLng Expense per ♦lOO of Total Net Sales 
per Stock Tiimover 


Total 
Hst Salso 


Amount 


Per Cent. 


Amount 


Per Cent. 


(In OOO'b) 


Graphic 1 

1 Actual 

5 20 40 60 80 100 120 


Graphic 1 

1 Actual 

3 20 40 60 80 100 120 140 




Total 
(Average) 


254 


ia.75 


1 


100.0 


t4.64 




100.0 








Total 
(Average) 


With Bonus 
Without Bonus 


60 
194 


10.96 
9.15 


112,4 
95.6 


4.77 
4.35 


142.8 
93.7 




i 




: 


i 




Total 
(Average ) 


28 


6.09 


62.5 


4.06 


87.5 




: 




With Bonus 
Vlthout Bonus 


S 
23 


6.05 
6,10 


62.1 

62.6 


4.03 
4.07 


86.9 




; 










Total 
(Average) 


97 


7.55 


77.4 


4.19 


90.3 




: 


" i 


♦40 to $80 


With Bonus 
Without Bonus 


14 
83 


8.28 
7^i2 


84.9 
76.1 


4.14 
4.3S 


89.2 
94.0 






1 








lotal 
(Avsrags ) 


89 


lO.flS 


102,9 


5.28 


U5.8 


Seo to *ieo 






With Bonus 
Without Boons 


28 
63 


11.01 

9.62 


112.9 
98.7 


S.79 
.SjOS 


124.8 
109.1 












i 




Total 
(Average) 


40 


10.66 


ibg.s 


5,95 


85.1 






i 


♦180 k over 


With Bonos 
Without Bonos 


IS 
25 


11.59 

10.05 


116.6 
102.9 


4,58 
5,58 


94.4 
77.2 






! 




' ; 


; 



Avwa^e ♦9.7S 



Average ♦4,64 



123 



refined units largely because of the 
value which they may have to the in- 
dividual merchant rather than be- 
cause of any value which attaches to 
them for purposes of generalization, 
A distinction which has been made be- 
fore between the actual amounts of 
expenditure and the tendencies for 
these amounts to increase or decrease 
should be kept in mind. 

The amounts of selling expense may 
also be compared for stores of differ- 
ent size which pay or do not pay their 
employees bonuses. Comparisons from 
this viewpoint for 254 stores are con- 
tained in Tables 71 to 74, inclusive. 



Table 71 shows the amounts of sell- 
ing expense per $100 of total net sales 
and per unit of sales per stock turn- 
over for stores classified by size and 
by the use or non-use of bonuses. In 
three of the groups of stores, classified 
by size, the amounts of selling expense 
are lower where bonuses are not 
used.* In one instance an inverse 
condition holds. When the amounts 
of selling expense are shown per $100 
of sales for each stock turnover, two 
groups of the stores have lower 
amounts of selling expense where 

* The averages which are lower are under- 
scored in Tables 71 to 74, inclusive. 



TABLE 72 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES AND PER $1,000 OF 

SALES PER FULL-TIME SALES-PERSON, FOR STORES PAYING OR NOT PAYING A 

BONUS TO REGULAR SALESMEN, CLASSIFIED BY SIZE OF STORE, 1919 





Method 

of 

Conpen3fttlon 


Nunbcr 

of 
Stores 


Selling Expense per tlOO of 
Total Bet Sales 


Selling atpcnsE per tlOO of Total Net iales per 
Jl.OOO of Sales per Pull-tlme Sales-person 


ClnsolflolJ 
Totnl 


Anount 


Per* Cent, 


Amount 


Per Cent. 


(In 000'«) 


Graphic 

Actual 
3 20 40 60 80 100 120 


Graphic 1 

1 Actual 
3 20 40 60 80 100 120 




Total 
(AvorQgo) 


254 


J9.75 




100.0 


$0.48 


i 


100.0 








Total 


With Bonu» 
nitbout BonuB 


60 
194 


10. ae 

9.13 

6.09 


112.4 
93.6 


0.48 
0.47 


100.0 
97.9 


(Averkgo) 








1 

i 


! 




Tot»l 
(Average) 


28 


62.3 


0.34 


70,8 


UzAer UO 


nlth Bonus 
Without Bonuo 


J 
25 


6. OS 
6.10 


62.1 
62.6 


0.34 
0.34 


70.3 
70. e 




Total 
(Avorttgo) 


97 


7.55 


77.4 


0.46 


96.8 






#40 to 880 


With BonuB 
Bithout Bomu 


14 

83 


8.23 
7.42 


84.9 
76.1 


0.47 

0.46 




1 

t 
i 




95.8 








Total 
(Avortgo ) 


68 


10.03 


102.9 

112.9 
98.7 


0.52 

0.55 
0,50 


ioa.3 










tlth BonuB 
TJlthout Oorma 


6» 


11.01 
9.62 


114.6 


tSO to tLdO 








1 


1 






Total 
(Averag* ) 


40 


10.66 


109.3 


0.45 














Slth BoMUB 
BlttoMt BonuB 


IS 
26 


11.39 
10.03 


116.8 
X02.9 


0.45 
0.45 




eiaO * OTor 
























AvoriAge Zo.7i 






Average $0*4B 





124 



TABLE 73 



AMOUNT OF SELUNG EXPENSE PER $100 OP TOTAL EXPENSE PER STOCK TURNOVER, 

FOR STORES PAYING OR NOT PAYING A BONUS TO REGULAR SALESMEN, 

CLASSIFIED BY SIZE OF STORE, 1919 



Clajtlrled 

Total 
tl»t Sale* 


Method 

of 

Oompanflatlon 


Nunbor 

cf 
Stores 


Selling Expanse 


per $100 of Total 


Expence 


Selling Expense por $100 of Total 
per Stock Turnover 


Expense 


Aaoo\jnt 

< 


Per Cont. 


Azaount 


Per Cent. 


(in OOO'o) 


) 20 40 


Graphlo 

60 80 100 120 


Actual 


Grapbls 
3 20 40 60 80 100 120 


Actual 




Total 
(ATsrttRe ) 


254 


♦47.47 




100.0 


$22.60 




100.0 




1 


1 


Total 
(Avorago ) 


WltH Bonos 
Hltbout Bonu£ 


60 
194 


60.06 
45.98 


105.5 
96.9 


21.77 
21.90 


96.3 
96.9 


i 








i 




Total 


28 


36.26 


76.4 


24.17 


106.9 


'Jt^sr ^ 


Blth Bonus 
Without Bonus 


5 
23 


35.11 
36.50 


^^^^^^ 


74.0 
76.9 


23. 42 
24.33 




103.6 
107.7 




1 






! 






Total 
(AToraga) 


97 


42.30 


89.1 


23.50 


104.0 






1 


|40 to t30 


»ltli Bonus 
Without Bonus 


14 

83 


49.70 
41.09 


104.7 
86.6 


24.85 
24.17 


110.0 
106.9 










i 
1 




Total 

(Aierago) 


89 


51.46 


108.4 


27.08 


119.3 








Jao to $180 


With Bonus 
Without Bonus 


26 
63 


53.39 

50.58 


112.5 

106.6 


28.10 
26.62 


124.3 
117.9 
















Total 


40 


47.03 


99.1 


17.42 


77.1 


»180 & ovor 


v;ith Bonus 
TJlthout Bonus 


15 
25 


48.92 
45.32 




103.1 
95.5 


18.82 
16.19 




83.3 
71.6 








1 



Average |47.47 



Avorago $32.60 



bonuses are not used and two have 
lower amounts where they are used. 
That is, when the amounts of selling 
expense are expressed in the second 
unit, there seems to be no character- 
istic relationship between the amounts 
of selling expense and the use or non- 
use of bonuses. 

Table 72 shows the amounts of sell- 
ing expense for these 254 stores ex- 
pressed in $100 of sales per $1,000 
sold per full-time sales-person. The 
differences from group to group, as 
bonuses are used or not used, are less 
marked when the amounts are ex- 
pressed in this unit than when they 



are given for sales alone, and the di- 
rection of change offers no basis for 
generalization. 

In Table 73 the amounts of selling 
expense are shown for each $100 of 
total expense for the stores classified 
as in Tables 71 and 72. On the whole, 
judging from the amounts of selling 
expense for stores of different size 
and the use or non-use of bonuses, it 
seems that the amounts are smaller 
for stores which have no bonuses. 
This is the condition in three of the 
four groups. When the amounts of 
selling expense are expressed in terms 
of $100 of total expense per stock 



125 



TABLE 74 



AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL EXPENSE PER $1,000 OF SALES 

PER FLXL-TIME S.\LES-PERSON, FOR STORES PAYING OR NOT PAYING A BONUS 

TO REGULAR SALESMEN, CLASSIFIED BY SIZE OF STORE, 1919 



Cloijlflod 

To Ml 
Ket S.lM 


Method 

of 

Coupcrjatlon 


number 

of 
Stores 


Selling Expense per $100 of Total Eiponso 


Selling Ebcpcnee 'per $100 of Total Expense per 
tl.OCO of Sales per Pull-tire Sales-person 


teount 


Per Cer.t. 


Amount 


ter Cent. 


(In OOO'i) 


Graphic 1 

1 Actual 
C 20 40 60 60 100 120 


Graphic 
3 20 40 60 80 100 120 


Actual 




Tctal 
(Avcroge) 


254 


$47,47 




100.0, 


$2.54 




100,0 








Tot»l 


With Bonus 
Elthout Bonus 


60 
194 


50.06 
45.08 


105.5 
66.9 


2.21 
2.58 


94.4 

101.7 


(ATcrsge ) 


i 








i 




Total 
(Average ) 


28 


56.26 


76.4 


2.04 


87.2 




! 


Vmler $40 


1.1th Bonus 
Without Bonus 


5 
23 


55.13 
S6.S0 


74.0 " 
76.9 


1.P5 

2.C6 


63.3 
88.0 










Total 
(Avor&ce ) 


67 


42.:-« 


89.1 


2.59 


110.7 








UO to $30 


filth Bonus 
UltlxTut Bonus 


14 
85 


49.70 
41.09 


104.7 
86.6- 


£.80 
2.55 


119.7 
109.0 




! 










Total 
(Avcrace) 


89 


51.46 


108.4 


2.65 


113.2 








$80 to Sieo 


Vlth Bonus 
Vithout Bonus 


26 
6S 


55.58 
50.58 


112.5 
106.6 


2.68 
2.63 


114.5 
112.4 












1 




Total 
(Average) 


40 


47.03 


99.1 


1.99 


85.0 




! 


1 


{180 4 o»or 


V;ith Bonus 
Without Bonus 


15 
25 


48.92 
45.52 


105.1 
95.5 


1.95 
2.03 


82.5 
86.8 










1 



Average $^7.47 



Avorace $2.34 



turnover the same tendency charac- 
terizes the groups of stores, all but 
one of them showing smaller amounts 
of selling expense, expressed in this 
unit, where bonuses are not used. 

In Table 74 the amounts of selling 
expense for the stores classified as in 
Table 73 are shown per $100 of total 
expense per $1,000 of sales per full- 
time sales-person. In two of the 
groups of stores the amounts are 
smaller where bonuses are not used 
and in two, smaller where bonuses 
obtain. No generalization can be 
made from this table in regard to the 



effect of the method of compensation 
on selling expense. 

The conclusions from Tables 73 and 
74 are not wholly negative if the ex- 
perience is considered as a unit. If 
the amounts of selling expense are ex- 
pressed first, in terms of sales, and 
second, in terms of total expense, 
they are found, in six out of eight 
instances, to be lower where no bon- 
uses are paid. Moreover, in five out 
of eight eases, they are found to be 
lower where no bonuses obtain, when 
they are expressed in sales per turn- 
over and in total expense per turn- 



126 



over. When they are expressed in 
terms of total net sales and total ex- 
pense per $1,000 sold per full-time 
sales-person, no significance can be 
attached to the differences according 
to the methods by which salesmen are 
compensated. 

When Tables 67 to 74, inclusive, 
are considered as a unit, the evidence 
that the amounts of selling expense, 
per unit of sales and per unit of total 
expense, are lower where no forms of 
extra compensation are paid is cumu- 
lative, inasmuch as the condition 
obtains in twelve of the sixteen cases. 

It is not contended in the above dis- 
cussion that the results of this 
analysis conclusively show that the 
amounts of selling expense are lower 
where neither commissions nor 
bonuses are paid. At best it indicates 
the nature of the weight of evidence 
from the experience available. With 
another selection of stores or addi- 
tional evidence, the conclusions might 
be different. The detail of the tables 
are incorporated in this study largely 
because they represent the informa- 
tion that was available, and so far as 
the Bureau knows, are the only data 
of this character which have been col- 
lected. 



ditions which seem to determine the 
amounts of selling expense in relation 
to sales and to other standards. A 
further analysis is now made of the 
stores classified in a somewhat differ- 
ent way. As a working hypothesis it 
seemed certain that the amounts of 
selling expense in stores of different 
size and location would be conditioned 
in part at least by the amounts of 
floor space used, the expenditures 
made for rent per square foot of floor 
space, and the amounts invested in 
fixtures per unit of sales and per unit 
of floor space. The following tables 
and the discussion concerning them 
present the data bearing upon these 
relationships. 

(1) — YEARLY AMOUNTS OP SELLING 
EXPENSE IN RELATION TO EXPEN- 
DITURES FOR RENT PER 100 
SQUARE FEET OF FLOOR SPACE, 

The records of 303 stores are avail- 
able for the study of the relationship 
of selling expense to sales under dif- 
ferent conditions of space utilization 
and expenditures for rent. These 
stores are classified by size and by 
the size of the city in which they are 
located. 



4. — YEARLY AMOUNTS OF SELLING EX- 
PENSE IN RELATION TO EXPENDI- 
TURES FOR RENT AND TO INVEST- 
MENTS IN FIXTURES, FOR STORES 
CLASSIFIED BY YEARS, BY SIZE, AND 
BY LOCATION. 

In the preceding sections, the stores 
have been classified according to con- 



A. — Yearly Amounts of Selling Ex- 
pense per $100 of Total Net Sales 
for Stores Classified hy Size, 
1919. 

Addressing attention first to the 
stores classified by size, some interest- 
ing facts may be deduced from the 
tables concerned. As the stores in- 
crease in size, as shown in Table 75, 



127 



TABLE 75 

AVEIL\GE AMOUNT OF FLOOR SPACE PER STORE, FOR STORES CLASSIFIED BY SIZE AND 
BY AMOUNT OF RENT PER 100 SQUARE FEET OF FLOOR SPACE, 1919 



■ 


Auonat cf 

Rent per 100 

•q. ft. of 

ricor Bp«ce 


Ihjnber 

of 
Store* 


Total 

Floor 

Space 

(•q. ft.) 


Average Floor Space per Store 


Cl«a»inod 

Tct»l 


A&ount 
(•q. ft.) 


Per Cent. 


(In OOO'i) 


Graphic | Aetual 
20 40 60 60 100 120 140 160 160 200 220 240 




Total 
(ATortgo) 


305 


1,422,359 


4,694 




100.0 








Dnder (20 
(20 to (40 
(40 to (60 
(60 k over 


54 

120 
65 

66 


209,599 
487,157 

525,535 
400,468 


6,159 

4,060 
5,164 
4,657 


i3i.e 


(ATere«e ) 




; 


uo.o 




; 




■ 






Total 
(Averaee ) 


45 


97,716 


2,171 


— 


46.3 




Under (20 
(20 to (40 
(40 to (60 
(CO tc over 


10 

25 

7 

3 


35,498 
46,871 
15,759 
5,608 


5,550 
1,876 
1,965 

1,203 


71.4 
40.0 
41.B 
25.6 


Dtaer Uo 


^^^^ 




Tottl 
(Average) 


115 


547,999 


5,080 


66.6 




Under (20 
(20 to (40 
(40 to (60 
(60 i over 


16 
46 
23 
26 


94, 172 

140,526 

62,909 

50,592 


5,886 
2,923 
2,735 

1,946 


125.4 
62 .3 
58.3 
41.5 


(40 to |80 






Total 
(Average) 


102 


511,259 


5,012 












Dnder (20 
(20 to (40 
(40 to (60 
(60 & over 


6 
41 
23 
32 


44,709 
240,855 
105,123 
120,552 


7.452 
5,676 
4,571 
3,767 


158.8 


^80 to *180 








97.4 




; 




; 






Total 
(Average) 


45 


465,405 


10,823 


230.6 




; 




Under t20 
(20 to (40 
(40 to (60 
(60 k over 


2 

6 
10 
25 


57,020 

59,105 

143,564 

225,716 


16,510 
9,851 

14,356 
9,029 


394.5* 
209.9 
305.8* 


(130 Ic over 


. 

















Average 4,694 



roll lar-sth not ehown 



128 



the amounts of floor space* used per 
store increase. The average amount 
in square feet for the stores having 
annual sales under $40,000 is 2,171; 
for those with annual sales of $40,000 
to $80,000 it is 3,080 ; for those with 
annual sales of $80,000 to $180,000 it 
is 5,012; and for those with annual 
sales of $180,000 and over, 10,823. 
For a given amount of sales the floor 
space used decreases as the amounts 
of rent paid per 100 square feet of 
floor space increase. 

It may be of interest to point out, 
for a given group of stores, the de- 
tailed conditions having to do with 
the floor space used per store, the 
amount of floor space used per $100 
of total net sales, and the correspond- 
ing amounts of selling expense per 
$100 of total net sales. For this pur- 
pose, 113 stores having annual sales 
of $40,000 to $80,000 will be used. 
The average amount of floor space 
for these stores is 3,080 square feet. 
The average amount per $100 of total 
net sales is 5.35 square feet (Table 
76), and the selling expense per $100 
of total net sales, $7.13 (Table 77). 
As the amounts of rent paid per 100 
square feet of floor space in these 
stores increase, as shown in Table 75, 
the average amounts of floor space 
decrease ; the amount for those which 
pay less than $20 per 100 square feet 
of floor space being 5,886 square feet, 
and for those which pay $60 and over 
for the same amount of space, 1,946. 
Moreover, as the amounts of rent paid 

* The total floor space, rather than that 
used for selling alone, is the area used in 
this and the following ratios. 



per 100 square feet of floor space in- 
crease, as shown in Table 76, the 
amounts of floor space used per $100 
of total net sales decrease. For the 
stores paying less than $20 per 100 
square feet of floor space, the amount 
is 9.93 square feet, and for those 
spending $60 and over for the same 
amount of space it is 3.28. That is, 
the more valuable the space, as 
evidenced in the rent paid per 100 
square feet of floor space, the smaller 
is the space used in relation to the 
sales. However, when the same group 
of stores is studied from the point of 
view of selling expense per $100 of 
total net sales, as in Table 77, the 
amounts are found generally to in- 
crease as the amounts of rent paid 
per 100 square feet of floor space in- 
crease. The average for the entire 
group is $7.13. For the stores paying 
less than $20 in rent per 100 square 
feet of floor space the amount is $6.63, 
and for those spending $60 and over, 
$8.44. If the tendencies are summar- 
ized for this group of stores, it is 
found that the amounts of floor space 
per store and the amounts of floor 
space per $100 of total net sales de- 
crease, while the amounts of selling 
expense per $100 of total net sales in- 
crease as the amounts of rent per 100 
square feet of floor space increase. 

These conditions, as noted, refer 
alone to one group of stores. An in- 
spection of Tables 75, 76, and 77 will 
show how nearly the conditions are 
duplicated for the various groups. 

Reserving for the moment further 
consideration of Tables 76 and 77, the 
reader's attention is called to Tables 



129 



TABLE 76 

TOTAL NET PALES, FLOOR SPACE, AND AMOUNT OF FLOOR SPACE PER $100 OF TOTAL 

NET SALES, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF RENT 

PER 100 SQUARE FEET OF FLOOR SPACE, 1919 





ABOunt of 
■tact par 100 
•q. ft. of 

Floor Sp&ca 


Runbar 

of 
Storaa 


Total 
Eat Salaa 


Total 

Floor 

Spaca 

(•q. ft.) 




Floor Spaeo par $100 of Total Bet Sales 




TstU 
lot Balas 


iBount 
(aq. ft.) 


Par Cent. 




(In 000'») 


GraptUo 
() ep 40 60 Bf 109 120 140 lep IBO 2<!0 220 24O 2§0 


Actual 




total 
(AToraga) 


SOS 


$36,193,710 


1.422,339 


3.93 




100.0 








$20 to Uo 
$40 to teo 

$eo i OTar 


S4 

120 
63 
86 


3,512,144 
9,457,372 
8,649,576 
14,574,626 


209,339 
487,157 
385,335 

400,463 


5.96 
S.IS 
3.76 
2. 75 


1S1.7 
131.0 
95.7 

70.0 


(ATans*) 














Total 
(ATaraea ) 


4S 


1,399,886 


97,718 


6.98 


177.6 








U&dar $30 
$20 to $40 
$40 to $«0 
$eo & OTar 


10 
2S 
7 
S 


275,510 
797,840 
212, BC8 
113,728 


33,498 
46,871 
13,739 
3,608 


12.16 
5.87 
6.46 
S.17 


309.4* 
149.4 
164.4 

80.7 


Csdar tiO 










^MHHH^^^ 








Total 
(ATerago ) 


113 


6,500,336 


347,699 


5.35 


136.1 








Itodar $20 
$20 to $40 
$40 to $60 

$60 4 over 


16 
48 
£3 
26 


948,525 
2,643,807 
1,366,387 
1,541,617 


94,172 
140,326 
62,909 
50,592 


9.95 
5.31 
4.60 
3.28 


252.7 
135.1 

117.0 
83.5 


^;o to too 


















Total 
(Average ) 


102 


11,986,362 


511,239 


4.27 


108.7 




1 




nndar $20 
$20 tc $40 
$40 to $60 
$60 4 over 


6 
41 

23 
32 


700,807 
4,643,255 
2,707,107 
3,935,193 


44,709 
240,855 
105,123 
120,552 


6.58 
5.19 
3.88 
3.06 


162.3 
132.1 
98.7 

77.9 


tao to ti£0 


1 












Total 
(Aterage) 


43 


16,307,134 


465,405 


2.85 


72.5 


tlSO k orar 


Osder $20 
$20 to $40 
$40 to $60 
$60 & over 


2 

6 
10 
2S 


1,587,302 
1,372,470 
4,363,274 
8,984,000 


37,020 
59,105 
143,564 
225,716 


2.33 
4. 31 

3.29 
2.51 


59.3 
109.7 










63.9 



AToraga 3.93 



Pull length not shonn 



78 to 80, inclusive, where the same 
stores are classified by the amounts 
of rent paid per 100 square feet of 
floor space and by size. In order to 
illustrate the significance of these 
tables, a p^roup of stores paying be- 
tween $20 and $40 in rent per 100 
square feet of floor space, but having 



different annual sales, are selected. 
In Table 78, with 120 stores involved, 
the average amount of floor space used 
was 4,060 square feeet. As the stores 
increase in size the amounts used in- 
crease rapidly from 1,876, for those 
with sales of less than $40,000, to 
9,851 for those with sales of $180,000 



130 



and over. When, for the same group 
of stores, the amounts of floor space 
per $100 of total net sales are deter- 
mined, as in Table 79, an inverse con- 
dition holds. The average amount 
of floor space per $100 of total net 
sales is 5.15 square feet. For the 
stores with sales under $40,000 it is 
5.87, and for those with sales of $180,- 
000 and over, 4.31. That is, the stores 



selling most goods require least space 
in terms of sales made. 

The foregoing details, however, re- 
fer solely to the amounts of floor 
space used and the amounts required 
for each $100 of sales. When the 
amounts of selling expense per $100 
of sales for this class of stores, dis- 
tributed by size, are determined as in 
Table 80, the average is $8.17. Those 



TABLE 77 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER SALES PER SQUARE 

FOOT OF FLOOR SPACE, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF RENT PER 100 SQUARE FEET OF FLOOR SPACE, 1919 




131 



TABLE 78 

AVTRAGE AMOUNT OF FLOOR SPACE PER STORE, FOR STORES CLASSIFIED BY AMOUNT 

OF RENT PER 100 SQUARE FEET OF FLOOR SPACE AND 

BY SIZE OF STORE, 1919 





Clsselfied 

Total 
»et Seles 
(m OOO'b) 


Kunber 

of 
Stores 


Total 

Floor 

Space 

(aq. ft.) 


Average Floor Space per Store 


Apwur.t cf 
Rrnt per 100 


Ajoouzit 
(aq. ft.) 


Per Cent. 


Floor Spaco 


Graphic 1 Actual 
) 20 40 60 80 100 120 140 160 180 200 E20 340 




Tjtal 
f Average) 


30$ 


1,422,359 


4,694 




100.0 






Total 
(Average) 


ttoder >40 

t40 to &eo 
teo to $iBo 

f 180 k over 


45 

113 
102 
43 


97,716 
347,999 
511,239 
465,405 


2,171 

3,080 
5,012 
10,823 


46.5 

65.6 

106.8 

230.6 












Total 
(Average) 


34 


209,399 


6,150 


131.2 




', 




Under $40 
(40 to |B0 
»eo to |180 

(180 t over 


10 
16 
6 
2 


55,498 
94,172 
44,709 
37,020 


3,350 
5,886 
7,452 
18,510 


71.4 
125.4 
158.8 
394.3* 


Dnder $20 


^^^^^^^^ 
















Total 
(Average ) 


120 


487,157 


4,060 






— 




• tlO to $40 


Under |40 
$40 to (80 
(80 to $180 

♦iBO i over 


25 
48 
41 

6 


46,871 
140,326 
240,855 

59,105 


1,876 
2,923 
5,876 
9,851 


40.0 
62.3 
125.2 














Total 
(Average) 


63 


325,335 


5,164 











t4C to J60 


Dnder $40 
$40 to $80 
$80 to $180 

Mao t over 


7 
23 
23 

10 


13,739 

62,909 
105,123 
143,564 


1,963 
2,735 
4,571 
14,356 


41.8 
58.3 






305.8* 








Total 
(Average) 


86 


400,468 


4,657 






I^ 




|C0 k OTer 


OOder $40 
$40 to $80 
$80 to $180 

$180 k over 


3 
26 

32 
2S 


3,608 
50,592 
120,552 
225,716 


1,203 
1,946 
5,767 
9.028 


25. 6 
41. S 




^^^^ 


192.4 







Average 4,694 



Pull length not Obown 



132 



which sell least have an average sell- 
ing expense of $5.80, and those which 
sell most have a selling expense of 
$8.94. That is, the tendency, with a 
single exception, is for the amounts 
to increase as the stores increase in 
size. The conditions observed for this 
single group of stores, classified by 
the amount of rent paid per 100 
square feet of floor space, also char- 
acterize all the stores when they are 
classified into groups bj'^ size. How 
nearly the conditions are duplicated 
for the different groups may be 
observed by comparing the detail in 
Table 80. 

The full meaning, however, of 
Tables 76 to 80, inclusive, has not 
been brought out in the foregoing 
summary and it is necessary to con- 
sider further certain of the details. 

From Table 76 it will be observed 
that the larger the store in terms of 
sales, the smaller the floor space re- 
quired per $100 of sales. For those 
selling least — under $40,000 — the 
amount is 6.98 square feet, and for 
those selling most — $180,000 and over 
— the amount is 2.85. Between these 
limits, the amounts decrease as the 
stores increase in size. However, as 
is shown in Table 77, the amounts of 
selling expense per $100 of total net 
sales increase as the stores increase in 
size. This is in keeping with the con- 
clusions previously reached at vari- 
ous places. When the selling expense 
per $100 of total net sales is deter- 
mined for the amount sold per square 
foot of floor space,* as in the columns 

* The method by which this unit is com- 
puted is explained on page 4, item 25. 



in Table 77 bearing this captain, it 
will be seen that, as the stores in- 
crease in size, there is a tendency for 
the amounts to decrease. That is, a 
relationship inverse to that found for 
selling expense in terms of sales alone, 
characterizes the stores. Moreover, a 
similar inverse relationship holds 
within each size-group in relation to 
the rent paid per 100 square feet of 
floor space. To illustrate this inverse 
tendency, stores with annual sales of 
$40,000 to $80,000 may again be 
chosen. It costs in selling expense 
per $100 of total net sales, on the 
average, for this group, $7.13. The 
amounts increase as the stores in- 
crease their rent payment per square 
foot. When the amounts of selling 
expense per $100 of total net sales 
are shown for the amounts sold per 
square foot of floor space, the average 
becomes $0.38. The amounts, how- 
ever, measured in this unit, decrease 
as the stores increase their rent 
payments per unit of space. This 
seems to show that high rental is 
expensive in terms of selling expense 
per $100 of sales, but cheap in terms 
of selling expense per $100 of total 
net sales for the amount sold per 
square foot on this space. In other 
words, the sales are enough larger on 
the high rental, as compared with 
those on the low rental space, to con- 
vert high selling expense in terms of 
sales to low selling expense in terms 
of sales per amount sold for each 
square foot. 

For purposes of illustration, stores 
with sales of $40,000 to $80,000 were 
used, but any of the groups might 



133 



TABLE 79 



TOT^Uj net sales, floor space, and amount of floor space per $100 OF TOTAL 

NET S.VLES, FOR STORES CLASSIFIED BY AMOUNT OF RENT PER 100 

SQUARE FEET OF FLOOR SPACE AND BY SIZE OF STORE, 1919 



* 


Cluiiriad 

■•t Salt! 

(In O00'«) 


■nber 

of 
Btoroe 


Total 
Bat Sals* 


Total 

Ploor 

6pac« 

(sq. ft.) 


Floor Bpae« par $100 of Total Bat Salaa 


tmraa\ at 
Brat jxr 130 


AaonDt 
{f,,. ft.) 


Par Cant. 


T1»<3T 8p«»« 


20 40 60 80 100 120 140 160 180 200 280 240 




total 
(ATorag* ) 


303 


$56,193,718 


1,422,589 


3.93 














thidu- )40 

>40 to teo 
8eo to «ieo 

»ieo * OTsr 


45 

US 
102 
45 


1,399,886 
6,800,336 
U, 966, 362 
16,307.134 


97,716 
347,999 
811.239 
468,405 


6.98 
8.38 
4.27 
2.86 


















72.6 




Total 
(iToragn) 

O^ar Mo 
»M to |B0 

)eo to Jtiso 
$180 * oT«r 


34 


3,512,144 


209,399 


8.96 












10 
1« 

6 
S 


B76, 510 

»48,52S 

700,807 

1,887,308 


33,498 
94,172 
44,709 
37,020 


12.16 
9.93 
6.58 
2.33 




Oidu' |eo 
















50,3 




Total 
(Ararago) 


1£0 


9,487,372 


487,187 


6.18 










•so t« Am 


ttodar %*0 

mo t* too 

$80 to $180 
$130 k OTsr 


S3 
48 
41 

6 


797,840 
8,643,807 
4,643,288 
1,378,470 


46,871 
140,326 
240,888 

89,108 


6.87 
8.31 
8.19 
4.31 




149.4 






132.1 














Total 
(Average) 


63 


8,649,876 


328,338 


3.76 






; 






Otader $40 
$i0 to $80 
$80 to $180 

$180 4 over 


7 
23 
23 
10 


212,808 
1,566,387 
2,707,107 
4,363,274 


13.759 
62,909 
105,123 
143,564 


6.4« 
4.60 
3.88 
3.29 




4«a to teo 








1 


















Total 
(Average) 


86 


14,574,626 


400,468 


2.76 


70.0 




Ctoder $40 
$40 to $80 
$80 to $180 

$180 4 over 


3 
26 
82 
25 


113,728 
1,541,617 
9,938,193 
8,954,088 


3.608 
80.892 
120.552 
225,716 


3.17 
3.28 
3.06 
2.51 




t«0 k oTar 


: 








77.9 






63.9 



*Pull langtb not ahown 



have been studied with similar re- 
sults. It is worth while for the reader 
to study the detail of Table 77, more 
particularly those showing the selling 
expense in terms of the extent to 
whif'h the space is used. 

It is also of interest to consider 



further than has been done in the 
preceding statement, the details of 
Tables 79 and 80. In Table 79 the 
amounts of lloor space required per 
$100 of total not sales decrease as the 
amounts of rent paid per 100 square 
feet of floor space increase. For the 



134 



stores paying less than $20 per 100 
square feet of floor space, the amount 
of floor space required for each $100 
of total net sales is 5,96 square feet, 
and from this as a maximum the 
amounts decrease to 5.15, when $20 to 
$40 are paid in rent per 100 square 
feet of floor space, and to 3.76 and 
2.75, respectively, when the amounts 
of rent per 100 square feet of floor 



space are $40 to $60, and $60 and 
over. Moreover, for stores with a 
given amount of rent per 100 square 
feet of floor space, the amounts of 
floor space required for each amount 
of sales decreases as the stores in- 
crease in size. 

Table 80 shows for stores classified 
by the amounts paid for rent per 100 
square feet of floor space and by size, 



TABLE 80 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER SALES PER SQUARE 

FOOT OF FLOOR SPACE, FOR STORES CLASSIFIED BY AMOUNT OF 

RENT PER 100 SQUARE FEET OF FLOOR SPACE 

AND BY SIZE OF STORE, 1919 





ClaaelflBd 

T«t«l 
Nst Salal 
(in OOO'i) 


RuTtibor 

or 
Storoa 


Selling Expense per tlOO of Total Met Sales 


Selling Sxpenee per llOO or Total Xat Sales 
per Salea per S^oare Foot of Floor Space 


tent par 100 


ABOunt 


Per Cent. 


laxnmt 


Per Cent. 


floor 6p«o« 


Oraphlc 
p 2(? 40 60 80 100 120 140 160 180 


Actual 


araphlo 1 

I Actual 

> 20 40 60 eO 100 120 140 160 IBO 




Total 
(Average ) 


SfiS 


(9.93 




100.0 


♦0.59 




100.0 










uader t*0 
fto to tao 

»60 to llflO 
tlfio k OT«r 


4S 

113 
102 
45 


6.46 
7,15 
9.80 
U.45 


es.i 

71.8 
S6.7 
115.5 


0.45 
0.58 
0,42 
•0,55 


115.4 
97.4 

J07.T 
84.8 


Iot»l^ 


; f 














i 




Tot»l 
(iT«r«e«) 


M 


U.S4 


120.2 


O.Tl 


182.1 










Vaa»T ^*0 
t40 to |80 

ISO to tiso 
llSO k ovor 


10 
16 
6 

2 


7. JO 
6.65 
9.05 
17.20 


73,5 
66,8 
91,1 
173,2 


0.89 
0.66 
0.58 
0,41 


228.2* 
16S.< 
148.T 

los.i 


«M4r fc9 






















total 
(Avara^ ) 


120 


6.17 


62,5 


0.42 


107,T 










amer («0 
^ to tSO 

teo to (180 

llSO k OTsr 


2S 
46 
41 

6 


5,eo 

6. S3 
9.39 
e.94 


ee,4 

65,7 
■4,6 
90,0 


0.54 
0.34 
0.48 

0.59 


87.2 
87.2 
125.1 

loo.o 


«»t<>l40 










; 






: 


• 




Total 
(ATorago) 


65 


10. SS 


106.5 


0.40 


102.6 










Olilor («0 
t40 to leo 
ISO to Ilea 

liao k OT«r 


7 

es 
es 

10 


6.67 
T.6S 
8.05 
12.68 


67.2 
76.0 
90.9 

127.7 


0.43 
0.55 
0.56 
0.42 




UO.S 

e».7 

69.7 

107.T 


%to to |«0 






















Total 
(A»ara«o ) 


86 


10,21 


102,8 


0.28 


71.8 








VBdar |40 

|«o to leo 
leo to liso 
lISO k onr 


5 
26 
32 
2S 


6,70 
8,44 
10,94 
10,22 


67.6 
85.0 
U0,2 
102,9 


0.28 
0.2S 
0.54 
0.26 


71.8 
71.0 
87.1 
66.T 


t«> k ow 






• 













iTvrago #0.30 

full Ic&fttk BOt tboiD 



135 



the amounts of selling expense ex- 
pressed first, in terms of sales, and 
second, in terms of sales for the 
amount sold per square foot of floor 
space. AVhen the stores are grouped 
■without regard to size, the amounts 
of selling expense on the whole tend 
neither to increase nor to decrease 
consistently as the amounts of rent 
paid per 100 square feet of floor space 
increase. When the stores with a 
given amount of rental are classified 
by size, however, the amounts clearly 
increase for each group and for the 
total. The amounts of selling expense 
per $100 of total net sales for the 
amount sold per square foot of floor 
space, however, decrease as the 
amounts of rent paid per 100 square 
feet of floor space increase, and they 
also tend to decrease with a given 
amount of rent paid as the stores in- 
crease in size. That is, with a given 
rent the stores which have high sell- 
ing expense per $100 of total net 
sales have relatively low selling ex- 
pense in terms of sales for the amount 
sold on each square foot of space used. 

Tables 77 and 80 deserve more at- 
tention than can be devoted to them at 
this place. Moreover, the discussion 
in Volumes II and VI of the Bureau's 
study of Costs, Merchandising Prac- 
tices, Advertising and Sales in the 
Retail Distrihution of Clothing, 
which relate, respectively, to the 
amounts of rent and to floor space, 
should be considered in connection 
with this topic. 

Two types of facts to which atten- 
tion has been called at various places 
in the discussion result from an 



analysis of these tables. The tables 
sliow first, the actual amounts of floor 
space used in terms of sales, and the 
amounts of selling expense per $100 
of total net sales and per $100 of total 
net sales for the amount sold per 100 
square feet of floor space for stores 
classified by size and by expenditures 
for rent. Second, they show the re- 
lationships of these amounts under 
the conditions established. That is, 
both standards of expense distribu- 
tion and tendencies for these 
standards to vary are determined. 

B. — Yearly Amounts of Selling Ex- 
pense per $100 of Total Net 
Sales for Stores Classified hy 
Size of City in Which Located,* 
1919. 

The amount paid for rent is obvi- 
ously determined largely by the size 
of the city, the type of the building 
used, the location, and other consid- 
erations, attention to which is given 
in Volume II of the Bureau's study 
of Costs, Merchandising Practices, 
Advertising and Sales in the Retail 
Distrihution of Clothing. It is un- 
necessary to repeat what is said there 
or to duplicate the tables. Because 
of the relation of store rent to size 
of city, it is thought worth while, in 
the analysis of selling expense, for 
stores paying difi'erent amounts of 
rent per 100 square feet of floor space, 
to classify them according to their 
city location. This is done for 303 
stores in Tables 81 and 82 in which 
two city-groups are used — those with 

* Population figures are for 1920. 



136 



population under 40,000 and those 
with population of 40,000 and over. 

The 225 stores shown in Table 81, 
located in the small cities, utilized, 
on the average, 3,828 square feet of 
floor space, while the 78 in the large 
cities utilized 7,194. In terms of $100 
of sales, however, the stores in the 
small cities used 4.79 square feet and 
those in the large cities, 3.08. Within 
each city-group, both the amounts of 
floor space per store and the amounts 
of floor space per $100 of total net 
sales decrease as the amounts of rent 
paid per 100 square feet of floor space 



increase. That is, the condition with- 
in the city-groups is not different from 
that for the stores when no distinction 
is made according to location. 

Table 82 shows that in the 225 
stores located in the small cities it 
cost, on the average, $8.29 to sell $100 
worth of goods. For the stores in the 
large cities the corresponding amount 
was $11.56. That is, it costs $3.27 
more on the average in the large than 
in the small cities. However, when 
the amounts of selling expense for the 
stores in the two city-groups are ex- 
pressed in terms of sales for the 



TABLE 81 

TOTAL NET SALES, TOTAL FLOOR SPACE, AND AMOUNT OF FLOOR SPACE PER $100 

OF TOTAL NET SALES, FOR STORES CLASSIFIED BY SIZE OF CITY AND BY 

AMOUNT OF RENT PER 100 SQUARE FEET OF FLOOR SPACE, 1919 





Amount of 
Rent p«r 100 

sq. ft. of 
Floor Space 


Humber 

of 
Stores 


Total 
Set Sales 


Total 

Floor 

Space 

(«q. ft.) 


Floor Space per $100 of Total Het Sales 


Slza 

or 
City 


Amount 
(aq. ft.) 

C 


Per Cent. 


(In OOO'a) 


•^"P*^" 1 Actual 
20 40 60 80 100 120 140 160 IflO 200 




Total 
( Average ) 


303 


$36,193,718 


1,422,359 


3.93 


1 


100.0 




i 




Under $20 
$20 to $40 
|40 to $60 
$60 & over 


54 

120 
63 
83 


3,512,144 
9,457,372 
8,649,576 
14,574,626 


209,399 
487,157 
325,335 

400,468 


5.96 
5. IS 
3.76 
2.75 


151.7 

131.0 

95.7 

70.0 


Total 
(Averags ) 






: 








Total 
(Average) 


225 


17,978,319 


861,192 


4.79 


121.9 








Under $20 
$20 to $40 
$40 to $60 
#60 & over 


32 
110 
51 
32 


1,924,842 
8,345,567 
4,795,540 
2,912,370 


172,379 
404,414 
194,420 

89,979 


8.96 
4.85 
4.05 

3.09 


228.0* 

123.4 

103.1 

78.6 


Dmler 














1 




Total 
(Average) 


T8 


18,215,399 


551,167 


3.06 


78.4 






40 and 


Under $20 
$20 to $40 
$40 to $60 
$60 & over 


2 
10 
12 
54 


1,587,302 
1,111,805 
3,354,036 
U, 652, 256 


37,020 
82,743 
130,915 
310,439 


2.33 
7.44 
3.40 
2.66 


59.3 

189.3 

86.5 

67.7 
■ -3 




' 







Average 3.93 



Pull length m)t ehawn 



137 



amounts sold per square foot of floor 
space, the disadvantage accompany- 
ing the stores in the large cities is 
converted into an advantage, the 
amounts for the stores in the small 
and the large cities being, respec- 
tively, $0.40 and $0.36. While there 
is a general tendency for the selling 
expenses per $100 of total net sales, 
for the stores in the two groups of 
cities, to increase as the amounts of 
rent paid per 100 square feet of floor 
space increase, an inverse tendency 
holds when the selling expenses are 
expressed in terms of sales for the 
amount sold per square foot of floor 
space. For the stores in the small 
cities which paid less than $20 in 



rent per 100 square feet of floor space, 
the selling expense, in the more re- 
fined unit, is $0.68, and from this as 
a maximum it decreases to $0.26 for 
the stores paying $60 and over in 
rent. A similar, but less certain ten- 
dency characterizes the selling ex- 
pense, similarly expressed, of the 
stores in the large cities. It is un- 
necessary to comment further on 
Tables 81 and 82. The reader's at- 
tention is called to similar tendencies 
as shown in Tables 76 and 77 and to 
that part of Costs, Merchandising 
Practices, Advertising and Sales in 
the Retail Distribution of Clothing 
which deals with the effect of loca- 
tion on rent. 



TABLE 82 

AMOUNT OP SELLING EXPENSE PER $100 OF TOTAL NET SALES PER SALES PER SQUARE 

FOOT OF FLOOR SPACE, FOR STORES CLuVSSIFlED BY SIZE OF CITY AND BY 

AMOUNT OF RENT PER 100 SQUARE FEET OF FLOOR SPACE, 1919 



Mmowat of 
R«at per 100 

•q. ft. at 
71*or ^ttoe 



B«ning Expsnaa par tlOO of Totnl Bet BCm 



<f tif «9 gp 60 lOp 12,0 ly 



Sailing Rzpaiua per |UK) of TotAl Hat Salaa par 
Salaa per Bqvara Vect af Tloor Spaa* 



Oraphia AtftOAl 

p 20 «0 BO 80 100 ISO 140 160 ISO »0 



IS.fiS 



Under tZO 
t20 to %*0 
#40 to («0 
•«0 k OTer 



11. M 
8.17 

io.se 
10. ei 



e.2s 



Itodar |20 

tao to $40 
•40 to teo 
#60 ft orer 



T.ee 

7.«2 
S.16 
8.S7 



ii.&e 



Dbder tto 

tao te tao 
|4o ts teo 
Mo k enr 



17.20 
10.03 
!£.» 
10.67 



100.0 



to .39 



I20.e 

82.3 
■106.3 
100.8 



0.71 
0.4C 
0.40 

a.ie 



89.3 



0.40 



78.5 
79.8 
92.2 
84.3 



o.se 

o.sa 

0.37 

0.2a 



116.4 



0.38 



17S.2 
101.0 
124.4 
U7.I 



0.40 
0.74 
0.42 

CIS 



100.0 

ies.1 
ioe.« 

71.8 

loe.e 



174.4 
•7.4 
94.9 

ee.T 



189.7 
107.T 
7XJ» 



Aiamca |9.9S 

Fall length not abowk 



Anraa* |o.sa 



138 



C. — Yearly Amounts of Selling Ex- 
pense per $100 of Total Net 
Sales for Stores Classified hy 
Size and by Size of City in Which 
Located* 1919. 

In the discussion of Tables 81 and 
82 of the relation of the amounts of 
selling expense per $100 of sales to 
expenditures for rent per unit of 
floor space, no distinction was made 
for stores of different size. The 
Bureau 's study referred to above and 
the discussion on pages 127 to 138 of 
this volume show conclusively that 
both the size of store and the size of 
the city in which the stores are 
located are important factors in de- 
termining the rent paid per square 
foot of floor space. In keeping with 
this finding it has been thought worth- 
while to study in detail the opera- 
tions of 87 stores with annual sales 
between $40,000 and $80,000 in 1919 
and located in cities with population 
under 40,000, classified according to 
the amount of rent paid per 100 
square feet of floor space. This is 
done for two reasons : First, to estab- 
lish expense and operation standards 
and second, to determine the direction 
of change in these standards in stores 
according to their rental expenditures 
and locations. The stores are so clas- 
sified in Table 83. 

It is necessary to remind the reader 
that it is not contended that the dif- 
ferent conditions of operation neces- 
sarily stand in the relation of cause 
and effect. To establish conclusively 
a causal connection, would obviously 

* Population figures are for 1920. 



require a more elaborate analysis than 
that which is made. It is of interest, 
however, to observe the association 
between the different amounts of ex- 
penditure and the operating condi- 
tions for the stores classified in this 
way, inasmuch as the merchant who 
desires may compare the results of his 
own operations with those here set 
out when the conditions are dupli- 
cated. 

It is sufiicient in explanation of 
this table to call attention briefly 
under specific headings to certain 
tendencies shown. As the amounts of 
rent paid per 100 square feet of floor 
space increase, 

1. The amounts of floor space per 
store decrease. 

2. The amounts of floor space per 
$100 of total net sales decrease. 

3. The rent paid per $100 of total 
net sales increases. 

4. The sales per store remain essen- 
tially constant. 

5. The sales per 100 square feet of 
floor space increase. 

6. The sales per sales-person de- 
crease. 

7. The amounts of selling expense 
per $100 of total net sales in- 
crease. 

8. The amounts of selling expense 
per $100 of total net sales per 
stock turnover increase. 

9. The amounts of selling expense 
per $100 of total net sales per 
$1,000 sold per person increase 
with a single exception. 

10. The amounts of selling expense 
per $100 of sales per amount sold 



139 



per square foot of floor space de- 
crease. 

11. The amounts of total expense per 
$100 of total net sales increase. 

12. The rates of stock turnover on 
the whole decrease, although the 
tendency, in some respects, is 
uncertain. 

13. The amounts of gross margin per 
$100 of total net sales generally 
decrease. 



feet increases. This holds for 
all stores and for stores clas- 
sified by size. 

(2). The higher the rent, the 
smaller is the amount of floor 
space used for each $100 of 
sales by stores of a given size 
as well as by all stores. 

(3). For stores of a given size, 
the amounts of selling expense 



TABLE 83 

RATIOS OF OPERATION IN STORES HAVING SALES FROM $40,000 TO $80,000, LOCATED 

IN CITIES WITH POPULATION UNDER 40,000 AND CLASSIFIED BY AMOUNTS 

OF RENT PAID PER 100 SQUARE FEET OF FLOOR SPACE, 1919 





MuBbsr 


taq 


r Spaes 


Tot.l 
K*t 5«1«9 


Total Hat Salaa 


Sailing Expense per $100 of 


' To°il 
let Svlea 


Rataa of 

StocJc 


Oroae 

■"'of 
Total 
fat Salaa* 


«at Profit 


■«nt per 

100 u. r>. 


Stor* 


P«p lioo 

Tot»l 
Mat Salst 


Par 

Sto-. 


cr 

Spaca 


^Ul-tlaa 
Salaa-poraon 


^. 


Per 

stotk 
TumoTar 


Per »1,000 
of Salea 

Puif!Ii« 

Salaa-paraoD 


Par Sale! 
SpHe 


Per $100 of 
lat balaa' 


Par 
itara* 


U*ar«««} 


87 


5,J«6 


5.7S 


»1.« 


156, <5« 


»1,739 


♦16,427 


17.37 


♦4.34 


«0.45 


♦0.42 


♦17.20 


1.7 


100.0 


100.0 


100.0 


(fedu* |2« 
*30 U »«0 
|40 to»« 
Uot onr 


U 
U 

n 
i» 


5,671 
5,076 

2,101 


5.62 
4.5S 

5.72 


1.20 
l.M 
2.15 

5.0« 


56,2SJ 
54,722 
51,004 
56,425 


592 
1,775 
2,205 
2,684 


13,809 
16, 7M 
15,251 
15,220 


6.56 

a.u 


S.OI 


0.55 
0.04 


0.30 
0.30 


13.63 

17.40 
17.80 
19.11 


1.6 
l.< 


99.0 

103.0 
97.1 
95,8 


115.4 

105.6 
91.7 


115.1 

109.3 

99.1 



14. The amounts of net profit per 
$100 of total net sales decrease. 

15. The amounts of net profit per 
store decrease. 

The amounts of expense items and 
the ratios of operation for these stores, 
as well as the certainty or uncertainty 
for the amounts to increase or de- 
crease, may be observed by consulting 
the table. 

Z>. — Summary, 

(1). The average amounts of floor 
space used per store decrease 
as the rent per 100 square 



(4), 



per $100 of total net sales in- 
crease, and the amounts in 
terms of sales for each square 
foot decrease, as the rent per 
square foot of floor space in- 
creases. 

For stores with a given rental 
per square foot, the amounts 
of selling expense per $100 of 
total net sales increase, while 
in terms of $100 sales for the 
amount sold per square foot, 
they decrease as the stores in- 
crease in size. 



140 



(5\ For stores with a given 
amount of rent per square 
foot of floor space, when con- 
sidered without regard to the 
size of store, selling expenses, 
in terms of sales are higher 
for stores in large than for 
stores in small cities. 

(2) YEARLY AMOUNTS OF SELLING 

EXPENSE IN RELATION TO INVEST- 
MENTS IN FIXTURES PER $100 OF 
TOTAL NET SALES. 

Another method of analyzing the 
amounts of selling expense for stores 
under different conditions of opera- 
tion consists in classifying the stores 
according to their investments in fix- 
tures. These investments, moreover, 
may be expressed in terms of sales 
and in terms of square feet of floor 
space. The present discussion has to 
do with the selling expense of a group 
of identical stores from year to year 
and with a somewhat larger number 
of stores for 1919, when they are 
studied from the point of view of the 
amount invested in fixtures per $100 
of total net sales. 

A. — Yearly Amounts of Selling Ex- 
pense per $100 of Total Net 
Sales and per $100 of Total Ex- 
pense, 1919, 1918, and 1914. 

For a year-to-year comparison of 
selling expense per $100 of total net 
sales, for stores with different amounts 
invested in fixtures in relation to 
sales, the records of 135 stores are 
available for 1914, 1918, and 1919. 
For these stores, considered as a 



whole, the amounts decreased between 
1914 and 1918, and 1918 and 1919, 
as shown in Table 84. Moreover, the 
amounts decrease from year to year 
for each group of stores when clas- 
sified by the amount invested in fix- 
tures in relation to sales. When the 
stores in each year are classified in 
this manner, there is a general but 
not uniform tendency for the amounts 
in terms of sales to increase as 
investments in fixtures increase. 
Whether this may be attributed to 
the amount of the fixture investment 
or to the size of the store, or to some 
other factor, will be considered later. 
When the same group of stores is 
classified for each year and for the 
combined years according to the 
amount of selling expense per $100 
of total net sales, and the amounts 
invested in fixtures per $100 of total 
net sales are determined for each 
group, as in Table 85, it is found 
that they decreased between 1914 and 

1918, and 1918 and 1919. In 1914, 
the average amount invested in fix- 
tures per $100 of total net sales was 
$6.61, in 1918 it was $4.65, and in 

1919, $3.90. For the combined years, 
the average is $4.70. Similar de- 
creases occur from year to year for 
each group of stores when classified 
according to the amounts of selling 
expense per $100 of total net sales. 
Accordingly, it follows that from 
year to year sales increased faster in 
all the stores and in each group, when 
classified by amounts of selling ex- 
pense, than did investments in fix- 
tures. 

When the stores are classified in 



141 



TABLE 84 

TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PEBl $100 

OF TOT.VL NET SALES, FOR 135 IDENTICAL STORES CLASSIFIED BY AMOUNT OF 

FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 





Amount of 
Fixture Account 

per ^100 of 
Total Net Sales 


Number 

of 
Store - 
^rears 


Total 
Bet Sales 


Total 
Selling 
Bxpense 


Selling Kxponae per flOO of Total Net Sales 


Tear* 


Amount 

( 


Per Cent. 




'^'•^P^^'^ Actual 
) 20 40 60 80 100 120 




Total 
(Average) 


40S 


$40,576,908 


$4,428,098 


»10.91 


i 


100.0 








Dnder ^2 
♦2 to *4 
U to |6 
|6 & over 


72 
131 

86 
116 


8,020,930 
10,428,302 

7,841,233 
14,286,443 


832,922 

985,648 

796,319 

1,811,209 


10.38 

9.45 

10.18 

12.68 


mm^^mm^i^^ 


S5.2 

86.6 

93.3 

116.2 


Total 
(Average ) 


i 


i 












Total 
(Average) 


135 


18,919,235 


1,992,510 


10.53 




96.5 








I%ider %Z 
*2 to »4 
♦4 to |6 
|6 fc over 


38 
51 
23 
23 


5,228,703 
4,897,266 
3,173,841 
£,619,423 


635,282 
428,443 
326,474 
702,161 


10.24 

8.75 

10.29 

12.50 


: 


93.9 
80.2 
94.3 
114.6 


1919 


^^^^ 




! 












Total 
(Average) 


135 


13,360,145 


1,473,360 


11.03 


101.1 




'; 




Under |S 
S2 to ^4 
»4 to »6 
$6 fc over 


20 
45 
34 

56 


2,163,476 
3,706,654 
2,807,944 
4,682,071 


244,748 
370,532 
267,521 
590,559 


11.31 

10.00 

9.53 

12.61 


103.7 
91.7 
87.4 

119.6 


1918 


! 
















Total 
(Average ) 


155 


8,297,530 


962,428 


11.60 


106.3 




;. 




Ibdar $2 
#2 to $4 
it to |6 
|6 & over 


14 
35 
29 
67 


628,751 
1,824,382 
1,859,448 
3,984,949 


52,942 
186,675 
204,324 
516,489 


8.42 
10.23 
10.99 
13.01 


77.2 

93.8 

100.7 

119.2 


1914 


; 




i 











Average tl0.91 



each year according to the amounts 
of selling expense per $100 of total 
net sales, the corresponding amounts 
of fixture investments, similarly meas- 
ured, increase as the amounts of sell- 
ing expense increase. That is, the 
stores having large selling expense in 
relation to sales also have large in- 



vestments in fixtures, similarly meas- 
ured. 

It is of interest, when the 135 stores 
are classified according to their in- 
vestment in fixtures, to express the 
amounts of selling expense in terms 
of total expense. This is done in 
Table 86. From year to year, the 



142 



amounts of selling expense constitute 
increasing proportions of total ex- 
pense. In 1914, $49.11 out of every 
$100 of total expense was due to sell- 
ing, in 1918 the amount was $50.35, 
and in 1919, $51.63. For the com- 
bined years the average amount was 
$50.63. Similar increases from year 
to year, with some rather large irreg- 
ularities, moreover, characterize each 
group of stores when classified by the 
amounts of fixture investment in re- 
lation to sales. How nearly this is 
true may be observed by consulting 
Table 86. 



When the stores in each of the 
years are classified by the amounts 
invested in fixtures per $100 of total 
net sales, there seems to be no un- 
mistakable direction of change from 
group to group in the relation of sell- 
ing expense to total expense. Pre- 
sumably, factors other than the 
amounts invested in fixtures help to 
determine the relation between the 
total expense and its constituent ele- 
ment, selling expense. Further con- 
sideration is given to this topic when 
the same stores are classified accord- 
ing to size. 



TABLE 85 

TOTAL NET SALES, FIXTURE ACCOUNT, AND AMOUNT OF FIXTURE ACCOUNT PER $100 

OF TOTAL NET SALES, FOR 135 IDENTICAL STORES CLASSIFIED BY AMOUNT OF 

SELLING EXPENSE PER $100 OP TOTAL NET SALES, 1919, 1918, AND 1914 





Amount of 

Sslllng 

Expsnss 

psp $100 of 

Total 

Net Sales 


Himber 

of 
Store - 
years 


Total 
Net Sales 


Amount of 
Plxt<ar« 
Account 


Amount of Fixture Account per $100 of 
Total Net Sales 


Tsars 


AiKrant 


Per Cent. 




'^^P'^o Actual 
) 20 40 60 80 100 120 140 160 180 200 




Total 
(Average ) 


405 


$40,576,903 


$1,908,079 


$4.70 




100.0 




i 

! 


.Total 
(ATsrage ) 


Onder $6 

$6 to $12 
$12 4: over 


87 

219 

99 


4,077,823 
24,012,511 
12,436,574 


142, 121 

1,058,434 
707j524 


3.49 
4.41 

5.67 


74.3 
93.8 
120.6 








i 




Total 
(Average ) 


135 


18,919,233 


733,774 


3.90 


83.0 




1 


1919 


Dnder $6 
$6 to $12 

$12 S: over 


36 
69 
30 


2,251,346 
U,282,916 
5,384,971 


66,112 
450,815 
221,847 


2.94 
4.00 
4.12 


62.6 
85.1 
87.7 








[ 
j 




Total 
(Average ) 


135 


13,3C0,14S 


620,889 


4.65 


98.9 




1 


1918 


Under $6 
|6 to $12 

$12 b over 


29 
76 
31 


1,138,407 
8,472,898 
3,748,840 


52,331 
383,973 
184,585 


4.60 
4.53 
4.92 


97.9 
96.4 
104.7 


r 








i 




Total 
(Average) 


135 


8,297,530 


543,416 


6.61 


140.6 






1914 


ttider $6 

|6 to $12 
$12 4 ever 


23 
74 
33 


688,070 
4,256,697 
3,352,763 


23, 678 
223,646 
301,092 


3.44 
5.25 
8.93 


73.2 
111.7 
191.1 










; 



Avorafio lt4.70 



143 



B. — Yearly Amounts of Selling Ex- 
pense per $100 of Total Net 
Sales and per $100 of Total Ex- 
pense, for Stores Cl-assified hrj 
Size, 1919, 1918, and 1914. 

For the year 1919 alone the records 
of 303 stores are available for the 
study of the relation of selling ex- 



pense to sales according to the rela- 
tive amount invested in fixtures in 
terms of sales. Table 87 summarizes 
the conditions for these stores for this 
year. From group to group, accord- 
ing to size, the amounts of selling 
expense per $100 of total net sales 
increase. This is the familiar ten- 
dency so often observed. The actual 



TABLE 86 

TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OP SELLING EXPENSE PER $100 OF 
TOTAL NET SALES, FOR 135 IDENTICAL STORES CLASSIFIED BY AMOUNT OF FIX- 
TURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 



-*— 


Amo-unt of 
Fixture Account 

per SlOO of 
Total Net Sales 


Humber 

of 
Store - 
years 


Total 
Expense 


Total 
Selling 
Br.j.'eaBO 


Selling Expense per JlCO of Total Expense 


Years 


ATTk'IIIMt. 

( 


Per Cent. 




Graphic 

Act'oal 
3 20 40 60 80 100 120 140 




Total 
(Average ) 


405 


58,745,2U 


54,428,098 


550.63 




i 


100.0 








Ifcder $2 
^ to ^ 
U to $5 
J6 3e over 


72 
131 

86 
116 


1,483,750 
2,110,9ti0 
1,692,296 
3,458,215 


832,922 

985, 648 

798,319 

1,811,209 


56.14 
46.69 
47.17 
52.37 


^^^^^ 


110.9 
92.2 
93.2 

103.4 


Total 
(Average) 




i 
j 

1 










f 




Total 
(Average) 


135 


3,859,150 


1,992,310 


51.63 






102.0 










Under $2 
$2 to |4 
$4 to 56 
$6 & over 


58 

ei 

23 
23 


955,292 

956, 647 

626,516 

1,320,895 


535,232 
428,443 
326,474 
702,161 


56.03 
44.79 
52.13 




110.7 

88.5 

103.0 

105.0 


1919 












; 






^^^^ 




Total 
(Average ) 


135 


2,926,234 


1,473,360 








90.4 










Under S2 
$2 to }4 
^ to 56 
$6 tc over 


20 
45 
34 
56 


595,711 

782,689 

629,157 

1,118,677 


244,748 
370,532 
267,521 
550,559 




'i ^^ 


122.2 
93.5 
84.0 

104.3 


1918 


























p 




Total 
(Average) 


135 


1,959,827 


952, 428 




97,0 










Under fe 
52 to $4 
54 to 56 
56 & over 


14 
35 
29 
57 


132, 747 

371,614 

436,623 

1,018,643 


52, 942 
186, 673 
204,324 
510,489 




73.8 

99.2 

92.4 

100.5 


1914 



























Average 550.63 



144 



amounts will vary from group to 
group depending upon the number 
and the size of the stores included, 
so that precise agreement between the 
figures for this number of stores and 
those for another is not to be ex- 
pected. 

"When the stores are classified ac- 
ccrding to size and investments in 
fixtures, as in Table 87, the amounts 
of selling expense per $100 of total 
net sales increase with the investment 
in fixtures so stated. To this general 
rule there are but three exceptions. 
The actual amounts for a single group 
of stores, classified by size, may be 
used to illustrate this tendency. 

The average amount of selling ex- 
pense per $100 of total net sales for 
the stores with annual sales of $40,- 
000 to $80,000 is $7.13. For the 28 
stores with this amount of sales, which 
had average fixture investments per 
$100 of total net sales of less than $2, 
the corresponding amount was $5.87. 
From this as a minimum, the amounts 
increase as the fixture investments in 
relation to sales increase, until the in- 
vestment of $4 to $6 is encountered. 
For the 17 stores in this group, the 
average amount is $9.41. For those 
having the largest investments in fix- 
tures in relation to sales, the amount 
is $6.79. That is, it is noticeably less 
than for any group except the first. 
Generally speaking, however, the 
larger the amount invested in fixtures 
per $100 of total net sales, the higher 
the amount of selling expense, sim- 
ilarly expressed. How nearly this 
condition obtains for each group of 



stores may be seen by consulting 
Table 87. 

When the 303 stores are classified 
by size and by the amounts of their 
selling expense per $100 of total net 
sales, there is an unmistakable ten- 
dency, as revealed in Table 88, for 
the amounts invested in fixtures in 
relation to ^les to increase as selling 
expenses, similarly measured, in- 
crease. It should be remembered 
that the stores with large selling ex- 
pense are generally large stores, and 
it might be inferred that the direct 
relationship between the amounts of 
selling expense and the amounts in- 
vested in fixtures, both expressed in 
terms of sales, is due largely, if not 
solely, to the size of the stores in- 
cluded. This, however, does not seem 
to be the case. It will be observed, if 
stores of essentially the same size are 
compared in this respect, that, in 
every size-group the investments in 
fixtures in relation to sales are rela- 
tively highest for the stores having 
the highest selling expense expressed 
in sales. The explanation for this re- 
lationship must be sought in some 
factor other than store size. Further 
light on this problem is found in the 
discussion having to do with invest- 
ments in fixtures per 100 square feet 
of floor space. 

Confirmation of the tendency for 
the amounts of selling expense to in- 
crease with the size of the fixture in- 
vestment per $100 of total net sales 
is contained in Tables 89 to 92, inclu- 
sive, which relate, respectively, to the 
combined and to the individual years, 
1919, 1918, and 1914. 



145 



TABLE 87 

TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 

OF TOTAL NET SALES, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919 



ClBBSlriod 


Amount of 
Fixture Aocouzit 

pep »100 of 
Total Fet Saloa 


BuBbor 

of 
Stores 


Total 
Het Sales 


Total 
Selling 
Expenao 


Selling Expense per $100 of Total HaC Sales 


Bet Sales 
(in OOO'a) 


ABount 


Per Cent. 


) 20 40 60 80 100 120 140 laj 




Total 
(Average ) 


503 


$36,193,718 


$3,595,401 


$9.93 




100.0 








Under $2 
«2 to »4 
$4 to $6 
$6 k over 


89 
120 

46 
48 


10,793,092 
11,972,443 
4,736,999 
8,691,184 


984,379 
1,083,537 

469,533 
1,05.7,952 


9.12 
9.05 
9.91 

12.17 


91.8 
91.1 

99.S 
122.6 


Total 
(Average ) 












1 




Total 
(Average) 


45 


1,399,88^ 


90,453 


6.46 


65.1 


Onder $40 


Under $2 
t2 to $4 
$4 to $6 
$6 * over 


10 
16 
9 

10 


323,183 
488,941 

283,784 
303,978 


14, 975 
30,114 
21,226 

24,138 


4.63 
6.16 
7.48 
7.94 


46.6 
62.0 
75.3 
80.0 




'^""^^^^^ 




1 
• 




Total 
(Average ) 


113 


6,600,356 


463,566 


7.13 


71.8 


|40 to $80. 


Under tZ 
$2 to $4 
$4 to C6 
$6 L over 


28 
57 
17 
11 


1,609,446 

3,371,123 

981,374 

538,393 


94,543 

240,121 

92,359 

36,543 


5.87 
7.12 
9.41 
6,79 


59.1 
71.7 
94.3 
68.4 








Total 
(Average) 


102 


11,986,362 


1,174,3«4 


9.30 


98.7 




1 




Under $2 
52 to M 
S4 to f-6 

06 t over 


35 
36 
15 

15 


4,187,940 
4,268,220 
1,658,547 
1,871,655 


401,986 
388,373 
176,478 
207,627 


9.60 

9.10 

10.64 

11.09 


96.7 
91.6 
107.2 
111.7 


too to SlSO 


: 
















Total 
(Average) 


43 


16,507,134 


1,867,010 


11. /.5 


115.3 








Under JS 
(2 to C4 
$4 to $6 
$6 •!: over 


15 
11 
5 

12 


4,672,523 
3,844,159 
1,813,294 
5,977,158 


472,975 
424,929 
179,470 
789,644 


10.12 

11.05 

9.90 

13.21 


101.9 
1U.3 

99.7 
133.0 


$130 t over 


; 




""^^^"^^^ 




; 




• 



ver.iGO 09.93 



In Table 89, the records of 135 i(ien- 
tical stores for the years 1919, 1918, 
and 1914, combined, are studied in 
the particular mentioned. In each of 
the size-groups, with two exceptions, 
the amounts of selling expense vary 



directly with the investment in fix- 
tures when both are measured in 
terms of sales. For the different store- 
groups, the average is largest for the 
stores having the largest investment 
in fixtures. This is particularly 



146 



noticeable for the stores with annual 
sales of $40,000 to $80,000. The 20 
stores which had less than $2 invested 
in fixtures per $100 of total net sales 
had selling expense of $7.11 so meas- 
ured. From this amount as a min- 
imum, the amounts increase to $11.85 
as a maximum for the stores with in- 
vestment of $6 and over for every 
$100 of goods sold. It is unnecessary, 
in view of the preceding discussion 
for the 303 stores for 1919 to com- 



ment further upon the actual amounts 
of selling expense, or upon the ten- 
dencies of change from store-group 
to store-group. Table 89 may be con- 
sulted in this connection. 

Table 90, which is based upon the 
records for 135 stores for 1919, con- 
firms in a striking way the details for 
the 303 stores analyzed in Table 87. 
How different the actual amounts are 
in this year from those for the years 
1914 and 1918 may be determined by 



TABLE 88 

TOTAL NET SALES, FIXTURE ACCOUNT, AND AMOUNT OF FIXTURE ACCOUNT PER $100 

OF TOTAL NET SALES, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, 1919 



Classified 


Amount of 

Selllns 

ExponBe 

per 5100 of 

Total 

Het Sales 


Huinber 

of 
Stores 


Total 
Ret Sales 


Amount of 
Fixture 
Account 


Amount of Fixture Account per $100 of Tntal ■•* BalM 


Bet Sales 
(tn OOo's) 


Aaount 


Per Cent. 




Graphic 

Actual 
20 40 60 80 100 120 140 160 180 200 220 240 




Total 
(Average) 


103 


$36,193,718 


$1,326,406 


$3.66 




100.0 




! 


Totsl 
(Average ) 


Under $6 
$6 t6 $12 
$12 Js over 


85 
163 
55 


6,505,471 
21,034,328 
9,853,919 


139,386 
767,735 
419,285 


2.63 
3.65 
4.26 

4.01 


71.9 
99.7 
116.4 








1 




Total 
(Average ) 


45 


1,399,686 


56,181 


109.6 




i 


Oodar $40 


Under J6 
C6 to $13 
$12 & over 


20 
22 
3 


589,760 
735,802 
74,324 


17,694 
52,360 
6,127 


3.00 
4.40 
8.24 


82.0 
120.2 
225.1 


"■"■■■" ! 




1 








Total 
(Average ) 


US 


6,500,336 


209,385 


3.22 


88.0 




^^^^ I 


Uo to tBO 


Onder |6 

86 to J12 
512 4 over 


49 
S4 

10 


2,753,742 

3,140,646 

605,948 


78,399 
105,227 
25,759 


2.85 
3.35 
4.25 


77,9 
91. S 
U6.1 










p 
1 




Total 
(Average ) 


102 


11,986,362 


408,538 


3.41 


93.2 




i 
1 


$80 to $180 


Under $6 

$6 to $12 
$12 & over 


15 
61 
26 


1,489,752 
7,335,416 
3,161,194 


35,454 
247,450 
125,634 


2.38 
3.37 
3.97 


65.0 
92.1 
108.5 












Total 
(Average ) 


43 


16,307,134 


652,302 










i 




$180 ft over 


Under $6 
$6 to $12 

$12 » over 


1 
26 
16 


472,217 
S.822,464 
6,012,453 


7,839 
382,698 
261,765 


1.66 


45.4 














1 





Average $5<' 



147 



TABLE 89 

TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 

OF TOTAL NET SALES, FOR 135 IDENTICAL STORES CI.ASSIFIED BY SIZE 

AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL 

NET SALES, 1919, 1918, AND 1914, COMBINED 



Classified 

Total 
Hot Solos 


ABoijnt of 
Plxt'jre Account 

per tlOO of 
Total Net S&les 


Number 

of 
Store- 
yaora 


Total 
Net Sales 


Total 
Selling 
Expense 


Selling Expense per $100 of Total Net Sales 


Ajaount 


Per Cent. 




Graphic , . , 
Actual 

20 40 60 60 100 120 140 




Total 
(Average) 


405 


$40,576,908 


t4, 428, 098 


$10.91 






100.0 








Under |2 
t2 to t4 
t4 to »6 

|6 fc over 


72 
131 

86 
116 


8,020,930 
10,428,502 

7,841,233 
14,286,443 


832,922 

985,648 

798,319 

1,811,209 


10.38 

9.45 

10.13 

12.68 


95.1 

86.6 

93.3 

116.2 


Total 
Coverage) 
















Total 
(Average ) 


112 


3,119,809 


■ 263,714 


8.45 


77.5 


Onder Uo 


Under J2 
12 to $4 

^4 to ee 

$6 k over 


14 
28 
27 
43 


403,857 

600,159 

723,519 

1,192,274 


25,921 

64,602 

58,105 

115,086 


6.42 
8.07 

8.03 
9.65 


""""^ 




58.3 
74.0 
73.6 
88.5 








Total 
(Average ) 


153 


8,672,180 


806,361 


9.30 


85.2 






♦40 to J80 


Under $2 
$2 to J4 
♦4 to »6 
|6 8c over 


20 

63 
31 
39 


1,107,291 
3,755,597 
1,653,451 
2,155,841 


78,674 
314,078 
158,148 
255,461 


7.11 
8.36 
9.56 

11.85 


65.2 
76,6 
87.6 

108.6 


















Total 
(Average) 


99 


11,411,444 


1,253,879 


10.99 






100.7 








Under J2 
♦2 to $4 
»4 to $6 
$6 Jc over 


27 
33 
19 
19 


3,021,911 
3,838,758 
2,392,924 
2,157,851 


307,174 
405,623 
274,227 
266,855 


10.16 
10.57 
11.46 
12.37 


93.1 

96.9 
105.0 
113.4 


*80 to $160 














\ 




Totel 
(Average ) 

Under |2 
♦2 to t4 
t4 to i6 
t€ !c over 


42 


17,373,475 


2,104,144 


12.11 


111.0 




i 




11 
7 
9 

15 


3,487,871 
2,033,738 
3,071,339 
8,780,477 


421,153 

201,345 

307,839 

1,173,807 


12.07 

9.90 

10.02 

13.37 


110.6 
90.7 
91.3 

122.5 


llBO k over 




i 












i 



Average $10.91 



148 



TABLE 90 

TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 

OF TOTAL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919 





Amoxint of 
Fixture Account 

per flOO of 
Totsl Hat Sales 


Number 

of 
Stores 


Total 
Net Saleo 


Total 
Selling 
Ejtpenso 


Selling Expense per JlOO of Total Net Sales 


■ Total 
Net Sales 
(In OOO'e) 


Amount 

< 


Per Cent. 


Graphic 

ro 40 CO CO 100 1^0 140 


Actual 




Total 
(Average) 


135 


$13,919,233 


8l, 992, 310 


810.53 














Under $2 
«2 to S4 
t4 to $6 
{6 & over 


38 

51 
23 
23 


5,228,703 
4,897,266 
3,173,841 
5,619,423 


535, 232 

428, 443 
326, 474 
702, 161 


10.24 

8,75 

10.29 

12.50 




(Average ) 




97,2 






83.1 




i 


97.7 




i 

! 
1 






Total 
(Averoge) 


12 


374,325 


24,945 


6.66 


63.2 


Under J40 


Under J2 
f2 to £4 
J4 to 56 
$6 & over 


2 

4 
3 
3 


62,964 
129,541 
S>2,7C3 
80, 117 


3,398 
8,213 
7,582 
5,752 


5.40 
6.34 
8.18 
6.45 


S1.3 
60.2 
77.7 
61.3 




Total 
(Average ) 


52 


2,967,756 


229,272 


7.73 


73.4 


t40 to $80 


Under J2 

iz to u 

U to 86 

{6 5: over 


8 
28 
8 
8 


470,684 

1,658,927 

431,726 

406,419 


29,603 

118,454 

43,053 

38,072 


6.31 
7.14 
9.97 

9.57 


59.9 
67.3 
94.7 
89.0 








i 




Total 
(Average) 


48 


5,603,210 


587,583 


10.49 


99.6 




i 




Under 82 
$2 to 84 

$4 to $6 
t6 i over 


20 
15 
7 
6 


2,217,649 

1,759,679 

636, lie 

789,764 


226,744 
168,668 
96, 369 
95,802 




97.1 


Seo to tl80 




i 
















109. S 












Total 
(Average) 


23 


9,973,942 


1,150,510 




109.6 










Under $2 
82 to $4 
84 to 86 


e 

4 

5 

6 


2,477,406 
1,349,119 
1,813,294 
4,334,123 


275,397 
133, 108 
179,470 
562,535 




105.6 
93.7 
94.0 

123.3 


$180 &. over 
















1 













Average 810.55 



149 



consulting the tables applying to the 
respective years. 

It should be remembered, while 135 
identical stores are considered, that 
tiie same stores are not necessarily 



found from year to year in either the 
same sales- or in the same fixture 
investment-group. Both sales and in- 
vestments increased from year to 
year. Accordingly, in successive 



TABLE 91 

TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 

OF TOTAL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1918 



Classified 

Total 
Net Sales 
(In OOO'a) 



Aiaovnt of 
Fixture Account 

per flOO of 
Total Net Sales 



Totol 
Net Sales 



Total 
Selling 
Expense 



Selling, Expense par SlOO of Total Net Sales 



20 40 60 80 100 120 140 



Total 
(Average ) 



$49 to tBO 



09O to $180 



two 



Totol 
(Average ) 



513,360,145 



$1,473,360 



Under $2 
52 to 04 
$4 to J5 

t6 8: over 

Total 
(Average ) 



2,165,476 
3,706.654 
2,807,944 
4,682,071 



1,117,468 



Under (2 
$2 to $4 
$4 to $6 

t6 5: over 



124, 9f 6 
269,792 
297, 192 
425,518 



Total 
(Average) 



3,239,547 



Under S2 
$2 to i4 

$4 to $6 
$6 & over 



434,936 

1,335,132 
779,116 
690,363 



Total 
(Average ) 



3,298,407 



Under t2 
t2 to ^ 
$4 to |6 
$6 & over 



593, 109 

1,417,061 

654,591 

633,646 



Total 
(Average) 



5,704,723 



Under 52 
$2 to $4 
$4 to 36 
C* t over 



1,010,465 

684,669 

1,077,045 

2,932,544 



244,748 
370,532 
267,521 
590,559 



92,371 



9,959 
19,976 
23,674 
38,762 



299,694 



33,916 
121,256 
65,955 
78,567 



363,676 



55,117 
161,063 
67,483 
80,013 



717,619 



145,756 
68,237 
110,409 
393,217 



11.31 

10.00 

9.53 

12.61 



6.27 



7.97 
7.40 
7.97 
9.11 



9,25 



7.80 

9.00 

8.47 

11.38 



11.03 



9.29 
11.37 
10.31 



12.58 



14.42 
9.97 
10.25 
13.41 



Average $11.03 



100.0 



102.5 
90.7 
86.4 

114.3 



75.0 



72.5 
67.1 
72.3 
82.6 



83.9 



70.7 
82.3 

76.9 
103.2 



100.0 



84.2 
103.1 

93. S 
114.S 




150 



years, the same stores do not neces- 
sarily occupy the same position. In 
spite of this fact, however, it has been 
thought worth-while to include stores 



the identity of which has remained 
the same. 

Further illustrating the actual in- 
vestments in fixtures for stores when 



TABLE 92 

TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 

OF TOTAL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF FIXTURE ACCOUNT PER $100 OP TOTAL NET SALES, 1914 



«laBBlTl8d 

Total 
Bet Sales 
(In 000 *^s) 



Total 
(Average ) 



Ifader ^0 



$40 to ^0 



fSO to #180 



Amotrnt of 
Fixture Account 

per $100 of 
Total Net Sales 



Total 
(Average ) 



Under (? 
#2 to $4 
t4 to t6 
ie & over 



Total 
(Average) 

Under tZ 
is to |4 

f4 to $6 
$6 & over 



Total 
(Average ) 



Under $2 
#2 to $4 
ti to (6 
#6 & over 



Total 
(Average ) 



Under $2 
#2 to #4 
#4 to $6 
#6 & over 



Total 
(Average ) 



Dbder #2 
|2 to |4 

$4 to |6 
$6 & over 



Total 
Net Sales 



$8,297,530 



14- 
55 



628,751 
1,824,382 
1,859,448 
5,984,949 



1,628,016 



215,927 
400,826 
333, 624 
677,639 



Total. 
Selling 
Expense 



|962, 428 



52,942 
186,675 
204,524 
518,489 



146,398 



2,464,877 



eoi, 671 

761,538 

442,609 

1,059,059 



2,509,827 



211,153 
662,018 
902,215 
734,441 



1,694,810 



161,000 
1,515,810 



12,564 
36,413 
26,849 
70,572 



277, 395 



15,065 

74,368 

49, 140 

138,822 



502, 620 



25,513 

75,692 

110,575 

91,040 



236,015 



17,960 
218,055 



Selling Expense per flOO of Total Net Sales 



111.60 



8.42 
10.25 
10.99 
15.01 



8.99 



5.82 

9.08 

8.05 

10.41 



11.25 



7.47 

9.77 

11.10 

13.11 



12.06 



11.99 
11.46 
12.25 
12,40 



9.92 
14.40 



Oraphlo 



O 20 40 60 80 100 120 140 
I I 1 I I I I 



Average ^11.60 



100.0 



72.6 
88.2 

94.7 
112.2 



77.5 



50.2 
78.3 
69.4 
89.7 



97.0 

64.4 

84.2 

95.7 

113.0 



104.0 

103.4 

98.8 

105.4 

106.9 



85.5 
124.1 



151 



classified by size and by selling ex- 
pense per $100 of total net sales, as 
shown in Table 88 for 303 stores, it 
is of interest to include Tables 93 to 
96, inclusive, which refer, respectively, 
to the combined and to the individual 
years under discussion. From the de- 
tails of these tables two facts stand 



out. First, as the stores increase in 
size, the investments in fixtures per 
$100 of total net sales tend, on the 
whole, to decrease. This condition 
characterizes the stores with annual 
sales less than $180,000. The group 
of smallest stores, generally speaking, 
have the largest amounts invested in 



TABLE 93 

TOTAL NET SALES, FTXTLTRE ACCOUNT, AND AMOUNT OF FIXTURE ACCOUNT PER $100 

OF TOTAL NET SALES, FOR 135 IDENTICAL STORES CLASSIFIED BY SIZE 

AND BY SELLING EXPENSE PER $100 OF TOTAL NET 

SALES, 1919, 1918, AND 1914 



Classified 


Amount of 

Selllne 

Expense 

per 5100 of 

Total 

Net Sales 


N'jnber 

of 
Store- 
years 


Total 
Net Sales 


Anoujit of 
Plxtijro 
Acco'int 


Ar.o'int of Fixture Account per $100 of Total 
Net Sales 


Total 
Bet Sales 


Anount 


Per Cent. 


(In 000' a) 


'^^P^'-" Actual 
) 20 40 60 30 100 120 140 160 




Total 
(Averago ) 


405 


J40,576,90S 


Jl, 908,079 


e4.70 




100. 




i 


Total 


Under 56 

$6 to 512 
$12 & over 


87 
213 
99 


4,077,823 
24,012,511 
12,436,574 


142,121 

1,053,434 

707,524 


3.49 
4.41 

5.67 


74.3 

93.8 

120.6 


(Average ) 














Total 
(Average ) 


112 


3,119,309 


164,125 


5.26 


111.9 




1 


Under t40 


Under $6 

$6 to 512 
$12 !-. over 


38 
56 
18 


1,054,505 

1,552,624 

512, 679 


45,919 
88,366 
29,840 


4.35 
5.69 
5.82 


92.6 
121.1 
123.8 










i 




Total 
(Average) 


153 


8,672,180 


377,800 


4.36 


92.8 






$40 to $80 


Under C6 

$6 to §12 
$12 k over 


41 
79 
33 


2,227,407 
4,519,537 
1,925,236 


80,510 
193,546 
103,744 


3.01 
4.28 
5.33 


76.8 
91.1 
114.7 










i 




Total 
(Avcrarjo ) 


98 


11,411,444 


431,319 


3.78 


80.4 




^^^^ 


$80 to Jmo 


Under 56 

$6 to Cl2 
$12 It over 


8 
56 
34 


795,910 
6,722,894 
3,892,640 


15,692 
252,060 
163,567 


1.97 
3.75 
4.20 


41.9 
79.8 
89.4 




1 




1 




Total 
(Avomce ) 


42 


17,373,475 


934,835 


5.38 


114.5 






SlBO ^ over 


Under 06 
$6 to 512 
$12 tc over 


23 
14 


11,217,456 
6,156,019 


524,462 
410,373 


4.08 
6.67 


99.6 
141.9 




; 




: 



Average $4.70 



152 



fixtures in relation to their sales. To 
this rule, however, there are a few 
exceptions, due probably to the num- 
ber and size of the stores included. 
Second, the amounts invested in fix- 
tures in terms of sales are largest for 
the stores having large selling ex- 
pense, similarly measured. 



The amounts of selling expense may 
also be expressed in terms of total ex- 
pense. This is done in Tables 97 to 
100, inclusive, for stores classified by 
size and amount of investments in 
fixtures in terms of sales, for the com- 
bined and for the individual years. 
When the amounts are expressed in. 



TABLE 94 

TOTAL NET SALES, FIXTURE ACCOUNT, AND AMOUNT OF FIXTURE ACCOUNT PER $100 

OF TOT.VL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, 1919 





Amo'int of 

Selling 

Expense 

per $100 of 

Total 

Net Sales 


Sijmber 

of 
Stores 


Total 
Net Sales 


Anount of 
Fixture 
Account 


1 

Anount of Fixture Accoixnt per §100 of 
Total Net Sales 


Total 
Het Sales 
(In OOO'b) 


Amoijnt 

C 


Per Cent. 


Graphic 

Actual 

) 20 40 60 80 100 120 140 




Total 
(Average ) 


135 


§18,919,233 


§738,774 


§3.90 




100.0 




: 


Total 


Onder §6 

$6 to §12 
§12 8: over 


36 
69 
30 


2,251,346 

11,282,916 

5,384,971 


66,112 
450,815 
221,847 


2.94 
4.00 
4,12 


75.4 

102.6 
105.6 


(Average ) 










1 




Total 
(Average ) 


12 


374, 325 


16, 697 


4.46 


114.4 






Onder ^ 


Under §6 

§6 to 512 
§12 6c over 


5 
7 


140,498 
233,827 


5,462 
11,235 


3.89 
4.80 


99.7 
123.1 






1 




Total 
(Average) 


52 


2,967,756 


107,839 


3.63 


93.1 




'""'"'^'^^"" » 


$40 to §80 


Under §6 
§6 to §12 
§12 8: over 


23 
21 

e 


1,314,938 

1,203,620 

449,198 


44,958 
41,606 
21,275 


3.42 
3.46 
4.74 


87.7 

88.7 
121.5 






; 




1 




Total 
(Average) 


48 


5,603,210 


175,362 


3.13 


80.3 




i 


S80 to §180 


Under §6 

§6 to §12 
§12 & over 


8 
24 
16 


795,910 
2,880,333 
1,926,967 


15,692 
95,844 
63,826 


1.97 
3.33 
3.31 


50.5 
85.4 
84.9 




f 




\ 




Total 
(Average) 


23 


9,973,942 


438,876 


4.40 


112.8 




1 


?180 & over 


«nder §6 
§6 to §12 
§12 Ic over 


17 

6 


6,965,136 
3,003,806 


302,130 
136,746 


4.34 
4.54 


111.3 
116.4 






„ 





Averajo C3.90 



153 



this form, for stores classified by size, 
there seems to be no unmistakable 
tendency for them in any one of the 
years to increase or to decrease with 
the amounts invested in fixtures per 
$100 of total net sales. One would not 
be justified, from the data available 
in concluding that, proportionately, 



selling expense becomes either a 
larger or smaller part of the total 
operating expense as the fixture in- 
vestments in terms of sales increase. 
In some instances there is a decided 
tendency for the amounts to increase ; 
in others, there is equally as clear a 
tendency for them to decrease. The 



TABLE 95 

TOTAL NET SALES, FIXTURE ACCOUNT, AND AMOUNT OF FIXTURE ACCOUNT PER $100 

OF TOTAL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, 1918 





Anount of 

Selling 

Expense 

per $100 of 

Total 

Ket Sales 


"riunber 

of 
Stores 


Total 
Net Sales 


Awoijnt of 
f^xMre 
Acco'jnt 


Amoiint of Fixture account per JlOO 
Total :;et Sales 


of 


Total 
Det Sales 


Amo'jnt 

( 


Per Cent. 


<ln coo's) 


Graphic 
^ 20 40 60 80 100 120 140 


Actual 




Totcl 


1S5 


013,360,145 


J.620,6S9 


04.65 




100.0 






Total 
(Average) 


Under 06 

C« to tl2 
'^12 ?; over 


28 
76 
31 


1,138,407 
6,472,898 

3,748,840 


52,331 
583,973 
184,585 


4.60 
4.53 

4.92 


98.9 

97.4 

105.8 










; 




Total 
(Averdge ) 


37 


1,117,468 


62,352 


5.58 


120.0 






Under t40 


Under 55 

$6 to $12 
5l2 fc over 


13 
18 


371,155 
554,810 
191,503 


20,150 
31, 654 

10,548 


6.43 
5.71 
5.51 


116.8 
122.8 
118.5 














Total 
(Average) 


56 


3,239,547 


132,364 


4.09 


88.0 




1 


t40 to 480 


Under t6 

*6 to 312 
012 1-. over 


15 
30 
11 


767,252 

1,741,593 

730,702 


32, 181 
68,060 
32,123 


4.19 
3.91 
4.40 


90.1 
84.1 
94.6 






; 




1 






Tctnl 
(Avcrafc ) 


28 


3,298,407 


127,804 


3.87 


83.2 






tso to tieo 


'Alder J6 
C6 to S12 
512 4 over 


19 
9 


2,300,126 
998,281 


84,115 
43,689 


S.66 
4.38 


78.7 






94.2 










Total 
(Average ) 


14 


6,704,723 


298,569 


5.23 


112.5 




; 


*180 i ovoi- 


Older %6 
$6 to 112 

$12 h over 


9 
5 


3,876,369 
1,628,354 


200,144 
98,225 


6.16 
5.57 


111.0 

115.5 




1 




1 














Average S4.6e 





154 



results of the comparison are negative 
so far as direction of change is con- 
cerned. They are, however, not with- 
out value when thought of as 
standards or norms and, as such, con- 
stitute measures of the experience of 
the stores under consideration. They 
may be used by the individual mer- 
chant to check his own figures when 
the conditions set out in the tables are 
duplicated in his own experience. 



C. — Yearly Ammints of Selling Ex- 
pense per $100 of Total Net Sales 
and per $100 of Total Expense, 
for Stores Classified by Amounts 
of Inventory in Relation to 
Sales, 1919. 

In the foregoing discussion of the 
relation of selling expense to sales 
and to total expense in stores with 
different amounts invested in fixtures 



TABLE 96 

TOTAL NET SALES, FIXTURE ACCOUNT, AND AMOUNT OF FIXTURE ACCOUNT PER $100 

OF TOTAL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, 1914 



Classified 


Amount of 
Selling 
Expense 
per 5100 of 
Total 
Net Sales 


thOTber 

of 
Stores 


Total 
Bet Sales 


Amount of 
Fixture 
Account 


Amo'int of Flxt'ire Acco'int per OlOO of Total Ilct Sales 


Total 
Net Sales 
(in OOO'b) 


Amount 


Per Cent. 


Graphic 
20 40 60 SO 100 IRp 140 160 130 200 220 


Actual 




Total 
(Average) 


US 


58,207,530 


5548,416 


J6.61 












Total 
(Average) 


Under $6 

t6 to $12 
$12 & over 


25 
74 
58 


688,070 
4,256,697 
5,552,763 


25,678 
225,646 
501,092 


3.44 

5.25 
8.98 


52.0 






155.9 




I 




Total 
(Average ) 


65 


1,628,016 


85,076 


5.25 






i 




tinaep f40 


Under Se 
{6 to $12 

tl2 t over 


20 
51 
12 


542,853 
765,987 
521,176 


20,507 
45,477 
19,292 


3.74 
5.95 
6.01 


56.6 
90.0 














Total 
(Average) 


45 


2,464,977 


157, 597 


5.58 

2.52 
5.53 
6.75 


84.4 


£40 to $80 


Dnder J6 
06 to 512 
Sl2 & over 


5 
28 
14 


145,217 

1,574,524 

745,356 


5,371 
83,880 
50,346 


— 


55. 1 
















Total 
(Average ) 


2? 


2,509,827 


128,153 


5.11 










CSO to 5180 


Under f« 
$6 to ei2 
812 St over 


IS 
9 


1,642,435 
967, 392 


72,101 
56,052 


4.67 
5.79 


70.7 










Total 
(Average) 


5 


1,C54,610 


197,590 


11.66 


17G.4 






§180 i: over 


Under $6 

56 to 512 
512 i over 


2 

5 


375,951 
1,318,659 


22.188 
175,402 


5.90 
13.30 


69.5 
£01.2 




• 




1 














M/craze 56.61 





155 



TABLE 97 

TOT.U. EXPENSE, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 

OF TOTAL EXPENSE, FOR 135 IDENTICAL STORES CLASSIFIED BY SIZE 

AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL 

NET SALES, 1919, 1918, AND 1914, COMBINED 



' 


Amount of 
PLxtupe Aooount 

per $100 of 
Total Het Sales 


Mimber 

of 
Store- 
years 


Total 
Expense 


Total 
Selling 
Expense 


Selling Expense per ^00 of Total Expense 


Classified 

Total 


Amount 


Per Cent. 


(m 000' s) 


Graphic 1 

1 Actual 
20 40 60 80 100 120 140 




Total 
(Average ) 


405 


53,745,211 


$4,428,098 


$50.63 




100.0 








Under $2 
$2 to ^ 
U to $6 
$6 & over 


72 
131 

66 
116 


1,483,750 
2,110,950 
1,692,295 
3,458,215 


832, 922 

985,648 

798,319 

1,811,209 


56.14 
46.69 
47.17 
52.37 


U0.9 
92.2 
93.2 

103.4 


Total 
(Avera^o) 
















Total 
(Average ) 


112 


628, 514 


263,714 


41.96 


82.9 






Under {40 


Under $2 
$2 to J4 
$4 to $6 
$6 k over 


14 
28 
27 
43 


83,689 
143,353 
145,281 
256,191 


25,921 

64,602 

58,105 

115,086 


30.97 
45. OG 
39.99 
44.92 


61.2 
89.0 
79.0 
88.7 




; 








• 




Total 
(Average ) 


153 


1,733,531 


806,361 


46.52 


91.9 




: 




Under 52 
S2 to $4 
$4 to 56 
$6 & over 


20 
63 
31 
39 


174,700 
728,539 
334,351 
495,941 


78, 674 
314,078 
158,148 
255,461 


45.03 
43.11 
47.30 
51.51 


88.9 

65.1 

93.4 

101.7 


$40 to J30 


; 








; 








Total 
(Average ) 


98 


2,420,053 


1,255,879 


51.81 


102.3 








Under $2 
C2 to C4 
&4 to 56 
06 u: ovar 


27 
33 
19 
19 


544,426 
768,058 
564,612 
542,957 


307,174 
405,623 
274,227 
260,855 


56.42 
52.81 
48.57 
49.15 


111.4 

104.3 

95.9 

97.1 


§80 to S180 


















Total 
(Average ) 


42 


3,963,113 


2,104,144 


53.09 


104.9 








Under $2 
52 to 54 
54 to 56 
56 i over 


11 
7 
9 

15 


680,935 

471,000 

643,052 

2,163,126 


421,153 

201,345 

307,339 

1,173,807 


61.85 
42.75 
47.50 
54.26 


122.2 
84.4 
93.8 

107.2 


$180 i over 














^^^^^ 



Avcra-o '550.65 



156 



TABLE 98 

TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OP SELLING EXPENSE PER $100 

OP TOTAL EXPENSE, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919 





Amount of 
fixture Account 

per JlOO of 
Total Net Sales 


Number 

of 
Stores 


Total 
Expense 


Total 
Selling 
Expanse 


Selling Expense per $100 of Total Expense 


Total 
Het Sales 
(In OOO'o) 


Anovint 


Per Cent. 


Graphic 

Actual 
5 20 40 60 80 100 120 




Total 
<Avarage ) 


135 


$3,859,150 


Jl, 992, 310 


$51.63 




100.0 








Under $2 
$2 to $4 
$4 to 46 

f6 & over 


58 
51 
33 
25 


955,292 
955,647 
626,316 

1,320,895 


535,232 
428,443 
326,474 
702,161 


56.03 
44.79 
52.13 
53.16 


108.5 


Total 
(Average ) 


! 






101.0 
103.0 












Total 
(Average ) 


la 


68,009 


84,945 


36.63 


71.0 


Onder ^40 


Uhder ij2 
J2 to $4 
i4 to $6 
$6 & over 


8 
4 
3 
3 


17, 342 
17,578 
15,763 
17,322 


3,398 
8,213 
7, 582 
5,752 


19.59 
46.72 
43.10 
33.21 


37.9 
90.5 
93.2 
64.3 




i 








Total 
(Average) 


sa 


510,917 


229,272 


44.87 


86.9 




1 




Under $2 
^ to t4 
$4 to §5 

$6 k over 


8 

8 
8 


70,645 
288,400 
73,706 
78,265 


29, 693 

118,454 

43,053 

38,072 


42.09 
41.07 
58.41 
49.64 


81.5 

79.5 

113.1 

94.2 


*40 to ^0 


: 




: 




; 








Total 
(Average ) 


48 


1,112,863 


587,583 


52.80 


102.3 








Uiider f2 
^ to ^ 
*4 to $G 
t6 & over 


20 
15 
7 

6 


386,038 
341, 952 
172,421 
212,447 


226,744 

168,668 

96, 559 

95,802 


58.74 
49.32 
55.89 


113.6 
95.5 

108.3 
87.3 


#80 to $180 
















i 




Totml 
(Average) 


S3 


2,167,360 


1,15.0,510 




102.8 






I 




Under ^8 
S2 to $4 
*4 to §6 
56 & over 


6 

4 
6 
6 


481,566 

308,707 

364,426 

1,012,861 


275, 597 
133,108 
179,470 
562,535 




110.8 
83.5 
95.4 

107.6 


#180 & over 




• 






; 






! 









Averagd 051.63 



157 



TABLE 99 

TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100, 

OF TOTAL EXPENSE, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1918 





Amount of 
Fixture Account 

per 1100 of 
Total Net Sal** 


Humber 

of 
Storas 


Total 
Expense 


Total 
Selling 
Bxponao 


Selling Expense per 5l00 of Total Expense 


Classified 

Totkl 
Bet Salea 


Imowat 


Per Cent. 


(In ooo'e) 


•^^P*^' Actual 
[) 20 40 60 80 100 120 140 160' 




Total 
(Average) 


135 


$2,926,234 


51,473,360 


$50.35 




100.0 




j 




Under f2 
12 to $4 
^4 to $6 

f6 i over 


20 

34 

56 


395,711 

782, 689 

629, 157 

1, IIB, 677 


244,748 
370,532 
267,521 
590,659 


61.85 
47.34 
42.52 
52.79 


122.8 
94.0 
64.4 

104.8 


Total 
(Average ) 


1 










i 




Total 
(Aver.Re) 


• sr 


215,913 


92,371 


42.78 


85,0 




! 
j 




Under $2 
$2 to $4 
J4 to J6 

f6 & over 


4 

e 
11 

14 


24,289 
47,242 
62, 777 
81,605 


9,959 
19,976 
83,674 
38,762 


41.00 
42.28 
37.71 
47.50 


81.4 
84.0 
74.9 
94.3 


TJUdsr UO 










^^^^■■■1 




■""■^"■^^1 




Total 
(Average) 


56 


657,743 


299,694 


45.56 


90.5 








Under $2 
tz to U 
ii to $6 
J6 & over 


8 
22 
15 
11 


72,254 
277,257 
161,091 
147,141 


33,916 
121«356 
65,955 
78,567 


46.94 
43.73 
40.94 
53.40 


93.2 

86.9 
61.3 
106.1 


$40 to $80 


















Total 
(Average) 


28 


719, 130 


363,676 


50.57 


10O.4 








Under $2 
$2 to $4 
$4 to $5 
|6 t over 


5 

12 
5 
6 


99,599 
295,897 
161,475 
162,159 


55,117 

161,063 
67,483 
80,013 


55.54 
54.43 
41.79 
49.34 


109.9 
108.1 
63.0 


530 to $180 


! 




: 




i 










Total 
(Average) 


14 


1,533,448 


717, 619 


53.62 


106.9 








Under $2 
»2 to »4 
«4 to $6 
♦6 i over 


3 
9 

3 
5 


199,569 
162,293 
243,814 
727,772 


145,756 

68,237 

no, 409 

593,217 


73.04 
42,05 
45.28 
S4.0S 


145.1 
63.5 
89.9 

107.3 


tieo t over 


; 












1 



Average $50.^ 



158 



TABLE 100 

TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OP SELLING EXPENSE PER $100 

OF TOTAL EXPENSE, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1914 



Classified 


Amount of 
Fixture Account 

per tlOO of 
Total net Sales 


number 

of 
Stores 


Total 
Expense 


Total 
Selling 
Expense 


Selling Expense per $100 of Total Expense 


Total 
Net Sales 
(In OOO'a) 


Amount 


Per Cent. 


<^"P^^° Actual 
D 20 40 60 80 100 120 




Total 
(Average ) 


135 


$1,959,827 


^962, 428 


$49.11 




100.0 








Under |2 
^ to ii 
U to §6 

J5 S: over 


14 
35 

29 
57 


132,747 

371,614 

436,823 

1,018,643 


52,942 
186, 673 
204,324 
513,489 


39.89 
50.23 
46.78 
50.90 


81.2 
102.3 

95.3 
103.6 


Total 
(Average ) 


r 














Total 
(Average) 


63 


344,596 


146, 398 


42.48 


86.5 






tlhdw ii40 


Under {2 
$2 to |4 

#4 to |6 
#6 8: over 


8 
16 
13 
26 


42,058 

78,533 

66,741 

157,264 


12,564 
36,413 
26,849 
70, 572 


29.87 
46.37 
40.23 
44.87 


60.8 
94.4 
81.9 
91.4 








: 




i 




Total 
(Average ) 


45 


564,871 


277,395 


49. U 


100.0 




j 




Under $2 
$2 to i^ 
U to $6 
$6 Sc over 


4 
13 

8 
20 


SI, 900 

162,882 

99,554 

270,535 


15,065 

74,368 

49,140 

138,822 


47.23 
45.66 
49.36 
51.31 


96.2 

9S.0 

100,5 

104.S 


^ to (80 


; 
















Total 
(Average ) 


22 


588,055 


302, 620 


51.46 


104.8 




1 




Iftider $2 
*2 to #4 
U to t6 
56 tc over 


2 

e 

7 
7 


58,789 
ISO, 199 
230,716 
168,351 


25, 513 

75,892 

110, 375 

91,040 


43.06 
58.29 
47.84 

S4.oa 


87.7 
118.7 

87,4 
110.1 


480 to |180 


; 




! 




! . 




! 




Total 
(Average) 


9 


462,305 


236,016 


51.05 


104.0 




1 


$180 Se over 


Under ^ 
Se to $4 

*4 to J6 

$6 & over 


1 
4 


39,812 
422,493 


17,960 
218,055 


45.11, 
S1.61 


91.9 
105.1 




j 




; I 














Average ^9.U 





159 



per $100 of total net sales, different 
groups of stores have been classified 
according to years and size. In Table 
101, 282 stores are classified by the 
amounts of inventory per $100 of 
total net sales and further by the 
amounts of fixture investment sim- 
ilarly measured. Certain aspects of 
this table are of interest. It should 
be noted that the stores are not clas- 
sified by size, notwithstanding the fact 
that size is an important element in 
determining the amounts of selling 
expense in relation to total net sales. 
To have classified the stores by size 
and bv the methods used in this table 



would have so distributed the data 
as to have made conclusions from 
them difficult, if not impossible. 

In the total section of Table 101 
the amounts of selling expense in 
terms of sales are found to increase as 
the amounts invested in fixtures in 
relation to sales increase. To this 
general rule there is but one exception 
and that of minor significance. A 
similar increase is also observed in the 
amounts of selling expense per $100 
of total net sales per stock turnover.* 
When the stores are classified, as in 

* The method by which this unit is com- 
puted is explained on page 4, item 19. 



TABLE 101 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER STOCK TURNOVER, 

FOR STORES CLASSIFIED BY AMOUNT OF INVENTORY PER $100 OF TOTAL 

NET SALES AND BY AMOUNT OF FIXTURE ACCOUNT 

PER $100 OF TOTAL NET SALES, 1919 





Anciuit of 
Plxt'ire Acco'Jiit 

per JlOO or 
Total Net Sales 


Hunber 

of 
Stores 


Selling Expanse 


per SlOO of Total Net Sales 


Selling Expense per $100 of Total Hat Sales 
per Stock Turnover 


luvor.tcry 

per Jloo of 

Total 

Ket Sales 


Amount 


Per Cent. 


Amount 


Per Cent. 


20 40 


Graphic 
60 80 100 120 140 


Actual 


Graphic 
D 20 40 60 80 100 120 140 160 180 


Actual 




Total 
(Avera-e) 


262 


$10.16 




100.0 


»4.62 


; 


100.0 




! 






Under t2 
«2 to $4 

Utoie 
%6 k over 


7J 
121 
49 
39 


9.40 

9.33 

10.20 

02.52 


92.5 
91.8 
100.4 
121.3 


3.92 
4.44 

4.86 
5.60 


84.8 
«6.1 
106.2 
121.2 


Total 
(Average) 






! 














— — 




Total 
(Avorigo) 


17 


9.03 


66.9 


2.05 


44.4 








Under ^ 
*2 to $4 
U to $6 
t6 i over 


7 

e 

1 
1 


6.53 
9.47 
9.52 
8.45 


83.9 
83. 2 
93.7 
83.2 


2.03 
1.93 
1.90 
2.73 


4St* 

4i.a 

41.1 
59.1 


Hlidcr {20 














i 




Total 
(Averago ) 


153 


10.75 


106.2 


4.50 


87.4 






1 




Under J2 
♦2 to t4 
U to #6 
16 k over 


48 
62 
27 
16 


10. IE 
9.S4 
10.35 
12.99 


■ 100.0 
96.9 
101.9 
127.9 


4.23 
4.23 
4.70 
4.81 


9i.e 

»£.« 

101.7 
104.1 


teo to tio 


""^^""^ 


''""^^^"'" i 












i 






! 

i 




Total 
(Averaf^e) 


112 


e.rj.i 


87.0 


6.31 


136.6 






i 




Under 82 
te to »4 
»4 to »6 
te k over 


IB 
51 
21 


6.30 

e.'.i 

10.11 

;o.»6 


62.0 

eo.e 

99.5 

us. 8 


4. SO 
S.47 
C.74 

e.v 


97.4 
11B.4 
145.8 

175.8 


UO t over 


1 


! 














„ 


, 





Avorbgo &i.o.i& 



160 



the remaining parts of the table, ac- 
cording to the size of the inventory- 
in relation to sales, the general, 
though not unmistakable, tendency is 
for the amounts of selling expense per 
$100 of total net sales to increase. 
This condition is clear for the stores 
having inventories in relation to 
sales of $40 and over, while it is 
doubtful for those having small in- 
ventories. 

The amounts of selling expense per 
$100 of total net sales for stores clas- 
sified by the amounts of inventory in- 
crease and then decrease from group 
to group. The average amount for 
those having inventories of less than 
$20 per $100 of total net sales is 
$9.03 ; for those with inventories of 
$20 to $40 it is $10.79 ; and for those 
with inventories of $40 and over it 
is $8.84. However, when the amounts 
of selling expense are computed per 
$100 of total net sales per stock turn- 
over no such uncertainty exists. The 
amounts increase from $2.05, for the 
stores having inventories of less than 
$20, to $4.50 for those with inven- 
tories of $20 to $40, and to $6.31 for 
those having inventories of $40 and 
over. 

From this table it may be con- 
cluded: First, that the amounts of 
selling expense on the whole increase 
as the amounts invested in fixtures 
per $100 of total net sales increase. 
Second, that the amounts of selling 
expense per $100 of total net sales 
increase and then decrease with the 
size of the inventory per $100 of total 
net sales. Third, that the amounts 
of selling expense per $100 of total 



net sales per stock turnover increase 
as the amounts invested in fixtures 
per $100 of total net sales increase. 
Fourth, that the amounts of selling 
expense per $100 of total net sales 
per stock turnover increase as the 
amounts of inventory per $100 of 
total net sales increase. 

The table not only shows that sell- 
ing expense, differently measured, in- 
creases or decreases for the different 
groups of stores; it also contains the 
amounts of expenditure. These con- 
stitute standards against which mer- 
chants may check their own business 
experience. 

D. — Yearly Amounts of Selling Ex- 
pense per $100 of Total Net 
Sales, for Stores Classified by 
Bates of Stock Turnover, 1919. 

Additional light is thrown upon the 
relation of the amounts of selling ex- 
pense to sales in stores classified ac- 
cording to the amounts invested in 
fixtures when stores are classified ac- 
cording to the rates at which they 
turned their stock during the year. 
Such a classification is contained in 
Table 102. 

The total section of this table dupli- 
cates the corresponding section of 
Table 101 and needs no further con- 
sideration. In the remaining part of 
the table, however, the stores are clas- 
sified differently. From this table it 
will be observed that the amounts of 
selling expense per $100 of total net 
sales increase with the rapidity with 
which the stock is turned. For the 
stores which turned their stock less 
than once, the amount is $7.66; for 



161 



TABLE 102 

TOTAL NET S.U.ES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 

OF TOT.VL NET SALES, FOR STORES CLASSIFIED BY RATES OF STOCK 

TURNOVER AND BY AMOUNT OF FIXTURE ACCOUNT PER 

$100 OF TOTAL NET SALES, 1919 





Afflount of 
Flxtiir* Account 

per »100 of 
Total Ket Sales 


Waiber 

of 
Stores 


Total 
Net Sales 




Selling Expense per #100 of Total Ket Sales 


Rates of 


Total 
Selling 
Expense 


Amount 

C 


Per Cent. 


Turnover 


Graphic [Actual 
20 40 60 80 100 120 140 


* 


Total 
(Average) 


282 


$35,563,014 


$3,611,688 


$10.16 




100.0 








Doder $2 
|2 to $4 
^ to »6 

J6 fc over 


73 
121 

49 
39 


9,563,956 
12,441,186 
5,636,955 
7,920,917 


899,465 

1,161,144 

574,841 

976,238 


9.40 

9.33 

10.20 

12.32 


92.5 
91.8 
100.4 
121.3 


Total 
(Average) 


' 














Total 
(Average ) 


9 


601, 109 


46,065 


7.66 


! 


75.4 




. 




Dnder |2 
$2 to $4 
|4 to |6 
$6 & ovei 


4 
2 
2 

1 


372,130 
121,583 
78,153 
29,243 


30,358 
6,940 
7,231 
1,534 


8.16 
6.71 
9.25 
S.2S 


1 


80.3 
56.2 
91.0 
51.7 


'Uhder 1 






1 




Total 
(Average) 


136 


11,010,775 


1,057,084 


9.60 


94.6 








Onder |2 
*2 to U 

t* to ie 

$6 & over 


26 
62 
25 
23 


2,115,399 
4,560,251 
2,054,966 
2,280,159 


199,292 

404,920 
220,589 
232,283 


9.42 
8.88 
10.73 
10.19 


92.7 
87.4 
105,6 
100.3 


1 to 2 


■ 
















Total 
(Average] 


100 


15,987,018 


1,694,631 


10.60 


104.3 




i 




Under $2 
$2 to $4 
$4 to t6 

$6 & over 


29 
44 
16 
11 


3,428,161 
5,458,218 
2,289,463 
4,811, 176 


300,903 
501,163 
236,457 
656,108 


8.78 

9.18 

10.33 

13.64 


86.4 

90.4 

101.7 

134.3 


8 to 3 


; 




' 




^^^^^^^^ 








Total 
(Average ) 


37 


7,964,112 


813,910 


10.22 


100.6 








Under $2 
♦2 to $4 
»4 to $6 
$6 & over 


14 

13 
6 
4 


3,648,266 

2,301,134 

1,214,373 

800,339 


368,912 
248,121 
110,564 
86,313 


10.11 

10.78 
9.10 
10.78 


99,5 
106.1 

89.6 
106.1 


5 & over 














1 



Average $10.16 



162 



those which turned their stock be- 
tween one and two times, it is $9.60; 
for those that turned their stock be- 
tween two and three times, it is 
$10.60; and for those which turned 
their stock three times or more during 
the year, it is $10.22. That is, the 
amounts of selling expense over the 
whole range of groups increase with 
the rapidity of stock turnover. This, 
in part, is another way of saying that 
selling expense per $100 of total net 
sales increases with the size of the 
store, inasmuch as the rates of stock 
turnover vary directly with the size of 
the store. Chief interest, however, in 
this table lies in the relative size of 
the amounts of selling expense for 
stores with different investments in 
fixtures in relation to sales but with 
similar stock turns. Comparisons 
which develop these relations are con- 
tained in the body of the table. 

For purposes of analysis, the single 
group of stores which turned their 
stock from two to three times may be 
used. As the amounts of investment 
in fixtures in terms of sales increase, 
the amounts of selling expense in re- 
lation to sales also increase. For 
those stores having fixture invest- 
ments of less than $2, the amount is 
$8.78; for those with fixture invest- 
ments of $2 to $4, it is $9.18; for 
those with fixture investments of $4 
to $6, $10.33 ; and for those with fix- 
ture investments of $6 and over, 
$13.64. The tendency for this group 
of stores is rather more definite than 
for the other groups in the table. The 
direction of change, however, is gen- 
erally the same. 



In this table no attention is given 
to the size of the store. To have 
classified these stores in the detail con- 
tained in Table 101 and in addition 
by size of store would have unduly 
complicated the arrangement. Table 
102 should be considered, however, 
with this limitation in mind. Its value 
consists in the norms of expense dis- 
tribution which are set up for stores 
operating under different conditions. 
These serve as guides to merchants in 
judging the amounts of their own ex- 
penditures. They are submitted for 
what they are worth and not as proof 
unmistakable that a causal connection 
between amounts of selling expense, 
rates of stock turnover, and invest- 
ments in fixtures has been estab- 
lished. 

E. — Summary. 

(1). For stores with a given 
amount of investment in fix- 
tures per $100 of total net 
sales, the amounts of selling 
expense in terms of sales de- 
creased from 1914 to 1918, 
and 1918 to 1919. This is 
true for all stores and for the 
stores classified by size. 

(2). For stores of a given size, 
amounts of selling expense 
per $100 of total net sales in- 
crease as the amounts of the 
fixture investment per $100 
of total net sales increase. 

(3). When stores are classified by 
the size of their fixture invest- 
ment per $100 of total net 



163 



sales, the amounts of selling 
expense per $100 of total net 
sales increase as the stores in- 
crease in size. 

(4). For stores with a given 
amount invested in fixtures in 
terms of sales, the proportions 
of total expense attributable 
to selling increased between 
1914 and 1918, and 1918 and 
1919. 

(5). When stores are classified by- 
size, the amounts of selling 
expense per $100 of total ex- 
pense tend neither to increase 
nor to decrease regularly as 
investments in fixtures in- 
crease. 

(6). For stores with a given in- 
vestment in fixtures, the 
amounts of selling expense per 
$100 of total expense increase 
as the stores increase in size. 

(7). When stores are classified 
either by amounts of inven- 
tory in terms of sales or by 
rates of stock turnover, sell- 
ing expenses measured in 
terms of sales alone or of sales 
per stock turnover increase as 
the investments in fixtures per 
$100 of total net sales in- 
crease. 

(8). For stores with a given in- 
vestment in fixtures per $100 
of total net sales, the amounts 
of selling expense in terms of 
sales increase as the rates of 
stock turnover increase. 



(3) — YEARLY AMOUNTS OP SELLING 
EXPENSE IN RELATION TO INVEST- 
MENTS IJJ FIXTURES PER 100 
SQUARE FEET OP FLOOR SPACE. 

A, — Yearly Amounts of Selling Ex- 
pense per 100 Square Feet of 
Floor Space and per $100 of Total 
Net Sales, for Stores Classified 
hy Size, 1919. 

It is shown in Table 75 that stores 
of a given size which pay high rent 
per unit of floor space utilize rela- 
tively small amounts of space. A 
similar condition obtains for stores 
which have large amounts invested in 
fixtures per 100 square feet of floor 
space. The present discussion has to 
do with amounts of selling expense in 
terms of sales and in terms of the 
amounts sold per square foot of floor 
space for stores classified according 
to their investments in fixtures. 

Table 103 shows for 303 stores, clas- 
sified by size and by amounts invested 
in fixtures per 100 square feet of floor 
space, the average amounts of floor 
space used per store and the average 
amounts of selling expense per square 
foot of floor space. The body of the 
table rather than the total is of chief 
interest. The meaning of the details 
which it contains may be illustrated 
by selecting stores with sales of $80,- 
000 to $180,000. The average amount 
of selling expense per store for the 
102 stores is $11,513 and the average 
amount of floor space in square feet 
is 5,012. As the amounts invested in 
fixtures per 100 square feet of floor 
space increase for this group of stores, 



164 



the amounts of floor space utilized de- 
crease. For the stores having the 
smallest amount invested in fixtures 
in relation to floor space, the amount 
of floor space utilized is 6,374 square 
feet and from this as a maximum it 



decreases to 3,717 for stores which 
have investments in fixtures of $120 
and over for each 100 square feet of 
floor space. There is no definite ten- 
dency, on the other hand, for the 
amounts of selling expense per store 



TABLE 103 

AMOUNT OF SELLING EXPENSE AND FLOOR SPACE PER STORE AND AMOUNT OF SELLING 

EXPENSE PER 100 SQUARE FEET OF FLOOR SPACE, FOR STORES CLASSIFIED 

BY SIZE AND BY AMOUNT OF FIXTURE ACCOUNT PER 

100 SQUARE FEET OF FLOOR SPACE, 1919 





Araoxjnt of 
Fixture Account 
per 100 BO. ft. 
of Floor Space 


Nujrber 

cf 
Stores 


Floor f^pAre 
per Stcro 
(sq. ft.) 


rolling 
E^rper.se 
per Store 


Selling Expense per 100 Square Feet of Floor Space 


Clacclfied 
Total 


Ajnount 


fer Cent. 


(in OOO's) 


Graphic 
3 20 4p 60 80 100 120 140 160 1^0 200 


Actual 




Total 
(Average ) 


503 


4,694 


$U,866 


$262.79 




^^^ 




100.0 






"""* 


Totnl 
(Avercige) 


Oader $40 
^40 to »80 
♦80 to tl20 

tl20 k over 


74 

105 

63 

61 


5,215 
5.964 
4,141 

S,891 


7,844 
8,314 
10,906 
23,652 


150.41 
209.74 
263.57 
404.89 


1— 




59.5 
83.0 
104.2 
160.2 










1 
1 

i 

. \ 
\ 

i 

■ 

• 




Total 
(Average) 


45 


2,171 


2,010 


92.68 


36.6 


DDder Uo 


nnder $40 
$40 to SSO 
$80 to $120 

$120 k over 


U 
24 

S 

7 


2,764 
2,118 
2,100 
1,456 


1,499 
2,095 
2,256 
2,424 


54.23 
98.91 
106.48 
166.43 


21.6 
39.1 
42.1 
65.9 




Total 
(Average ) 


US 


5,080 


4*102 


133.18 


52.7 


$40 to #60 


Under $40 
$40 to $80 
$80 to $120 

$120 k ovor 


53 

42 

25 

15 


5,786 
2,834 
2,559 
3,014 


3,828 
3,669 
4,729 
4,959 


101. U 
129.46 
184.80 
164.53 


40.0 
51.2 
75.1 
65.1 




Total 
(Average) 


102 


5,012 


11,513 


229.71 




! 


90.9 






■ 


$80 to iiao 


Ojder $40 
$40 to $80 
$80 to $120 

$120 k over 


22 
53 
29- 

IS 


6,574 
6,354 

4,394 
5,717 


10,640 
12,427 
10,613 
12,480 


166.36 
252,11 
241.53 
335.75 


65.4 

■ 91.8 

95.5 

152.8 






"""" 






^^^ 








Total 
(Average ) 


43 


10,825 


43,419 


401.17 


158.7 






J 




Under $40 
$40 to $80 
680 to $120 

$120 k over 


8 

6 

8 

21 


11,296 
11,609 
8,659 
11,289 


25,717 
43,080 
32,978 
54,237 


227.66 
371.09 

585.20 
480.44 







90.1 
146.8 
152.8 
190.1 


4180 & ovar 












. 




. 



Average |26£.79 



165 



to increase or to decrease as the fix- 
ture investments per unit of floor 
space increase. 

The table also shows for each group 
of stores, classified by size, the 
amounts of selling expense per 100 
square feet of floor space. For the 
group of stores under consideration, 
the average was $229.71. For the 
stores with the smallest amount in- 
vested in fixtures per 100 square feet 
of floor space, the corresponding 
amount was $165.36, and from this 
as a minimum the amounts increase 
as the fixture investments increase. 
For those stores which had $120 and 
over invested in fixtures, measured in 
this manner, the selling expense per 
100 square feet of floor space was 
$335.75. 

The tendencies for the amounts of 
selling expense per store, floor space 
per store, and selling expense per 100 
square feet of floor space, to increase 
or decrease vnth investments in fix- 
tures is not so certain in the other 
groups of stores. Generally speaking, 
however, the conditions noted above 
for this group also characterize the 
others. 

Table 104 shows the amounts of 
selling expense per $100 of total net 
sales and per $100 of total net sales 
for the amount sold for each square 
foot of floor space.* The details of 
this table are of interest. Within 
each group of stores, when classified 
by size, certain unmistakable tenden- 
cies in these amounts seem to be 
present. First, the amounts of sell- 

* The method by which this unit is com- 
puted is explained on page 4, item 25. 



ing expense per $100 of total net sales 
increase as the amounts invested in 
fixtures per unit of floor space in- 
crease. To this general rule there 
are occasional exceptions, but these 
are insufficient to alter the conclusion. 
"When the amounts of selling expense 
per $100 of total net sales for the 
amount sold on each square foot of 
floor space are determined, they seem 
on the whole to decrease for each 
group of stores as the fixture invest- 
ments per $100 of total net sales in- 
crease. That is, an inverse relation- 
ship between the amounts expressed 
in this form and in selling expense in 
terms of sales alone is set up. One 
may conclude, in spite of the fact that 
the amounts of selling expense per 
$100 of total net sales increase with 
the amounts invested in fixtures per 
100 square feet of floor space, that 
this disadvantage is overcome because 
of the diminished amount of floor 
space involved. That is, the sales per 
unit of floor space, in the stores hav- 
ing large amounts invested in fixtures, 
overcome the disadvantage under 
which stores operate so far as selling 
expense alone is concerned. 

Tables 104 and 105 not only estab- 
lish more or less definitely certain 
tendencies of change in expense ratios, 
but also set up standards against 
which merchants may judge their 
own costs measured in the units em- 
ployed. 

Table 105 contains the data found 
in Table 104, but rearranged so as to 
facilitate comparisons of selling ex- 
pense per $100 of total net sales and 
per $100 of sales for the amoiuit sold 



166 



TABLE 104 



AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER SALES PER SQUARE 

FOOT OF FLOOR SPACE, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF 

FIXTURE ACCOUNT PER 100 SQUARE FEET OF FLOOR SPACE, 1919 





Afflount of 
Fixture Account 
per 100 eq. ft, 
of Floor Space 


Snaiber 

of 
Btoxos 


Belling Expense per $100 of Total Ret Sales 


Selling Sxpenae per $100 of Total Net Sales per 
Soles per Square Foot of Floor Space 


Claasiriad 

Total 
Set Sales 
(In OOO'o) 


Anctmt 


Per Cent. 


Amount 


Per Cent. 


Graphic 
> 20 « 60 80 100 120 140 


Actual 


Graphic 
3 20 40 60 80 100 120 140 160 


Actual 




Total 
(Average) 


SOS 


$9.93 


1 


100.0 


$0.59 


1 














Dnder $40 
$40 to $80 
$80 to $120 

$120 4 over 


74 
105 
65 
61 


e.6S 
9.54 
9.67 
11.09 


86.8 

96.1 

97.4 

111.7 


0.48 
0.43 
0.56 
0.50 


" 


Total 




















"" I 






i 
J 

1 






Total 
(Average ) 


45 


6. 46 


66.1 


0.45 


lis .4 








Under $40 
$40 to $80 
{80 to $120 

$120 i over 


U 
24 
S 

7 


6.55 
6.50 
7.99 
7. 15 


S$.9 
65.5 
74.4 
71.8 


0.S7 
0.45 
0.51 
0.31 


146.2 
110.» 
130.8 
79.5 


Under $40 










1 
I 

i 




Total 
(Average) 


113 


7.13 


71.8 


0.38 


97.4 




1 




Under $40 
$40 to $8» 
$80 to $120 

$120 & over 


33 
42 
25 
15 


6.75 
6.42 
7.80 
6.85 


63.1 
54.7 
78.5 
89.1 


0.45 
0.32 
0.33 
0.48 


11S.4 
82.1 
84.9. 

125.1 


$40 to $80 


' 




... ' 












[ 




Total 
(Average ) 


103 


9.80 


98.7 


0.42 


107.7 




! 


1 




■ Under $40 
$40 to $80 
^0 to $120 
$120 * over 


zz 

93 
28 
18 


9.10 

10. sa 

9.47 

10.04 


81.6 
104.5 

95.4 
101.1 


0.50 

0.46 
0.57 
0.50 


I28.e 

U7.9 
94.9 
76.9 


$80 to C180 










^^tm^mmm ' 






1 








Total 
(Average ) 


49 


11.45 


115. S 


0.35 


84.6 




i 






Under $40 
$40 to $80 
$80 to $120 

$120 & over 


e 

6 
8 
21 


9.79 
12.73 
11.14 
11.61 


98.6 
128.2 
112.2 
U6.9 


0.42 
0.44 
0.52 
0.28 


107.7 
112.8 
82.1 
71.8 


$1S0 & over 























ATerege $9.93 



Averaee $0.58 



on each square foot of floor space for 
stores of different size, but with the 
same amounts invested in fixtures. A 
moment's consideration of its eon- 
tents may be of interest. 

For each group of stores, when 
classified by the amounts of fixture in- 
vestments per unit of floor space, the 
amounts of selling expense per $100 



of total net sales increase as the size 
of the stores increases. They also 
increase as the amounts of fixture 
investment in relation to floor space 
increase. The amounts of selling ex- 
pense per $100 of sales for the amount 
sold on each square foot of floor space, 
for each of the groups of stores as 
classified, however, generally tend to 



167 



decrease as the size of the stores in- 
creases, and as the size of the invest- 
ments in fixtures increases. This table 
confirms the conclusion drawn from 
Table 10-1 that, while amounts of sell- 
ing expense are generally high in 
terms of sales for stores having large 
investments in fixtures per 100 square 



feet of floor space, they are relatively 
low when they are expressed in terms 
of the utilization of the floor space. 

The association between large 
amounts of selling expense per $100 
of total net sales and large invest- 
ments in fixtures per 100 square feet 
of floor space is brought out in Table 



TABLE 105 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTxVL NET SALES PER SALES PER SQUARE 

FOOT OF FLOOR SPACE, FOR STORES CLASSIFIED BY AMOUNT OF FIXTURE 

ACCOUNT PER 100 SQUARE FEET OF FLOOR SPACE 

AND BY SIZE OF STORE, 1919 



iBcyszt of 
Plxtura AccDiijit 
per 100 »q. rt, 
of Floor Sp«ce 



Clasalflsd 

Total 
Net Sales 
(In OOO'b) 



Selling Sxpenae par $100 of Total Bat Salea 



Grapillo I Actual 

20 40 60 80 100 120 140 



Graphic | Actual. 

40 60 60 100 120 140 160 



DBder |40 
ftO to )80 
tSO to $180 

tlSO h over 



Under $40 



Dcder $40 
$40 to $80 
$80 to $1S0 

$180 fc orer 



Under $40 
$40 to $80 
$00 to $180 

$180 h over 



$80 to $180 



Under $40 
$40 to $80 
$80 to $180 

$180 k over 



Total 
(Average ) 



$180 A over 



Under $40 
$40 to $60 
$80 to $180 

$1£0 ft over 



$9.93 

6.46 
7.13 
9.80 
U.43 



8.S2 



s.ss 

6.7S 
».10 
8.79 



9. 54 



6.50 
6.42 
10.30 
12.73 



9.67 



7.59 

7.80 
9.47 
11.14 



11.09 



7.13 
8.85 
10.04 
11.61 



Avorags $?.9S 



100.0 



65.1 
71.8 
98.7 
115.3 



85.8 



ss.g 

ee.i 

91.6 
S8.6 



96,1 



65.5 
64.7 

104.5 
128.2 



87.4 



74.4 

78.5 

es.4 

112.2 



1U.7 

71.8 
89.1 
101.1 
116.8 



$0.39 



0.43 
0.38 
0.42 
0.33 



0.43 



0.57 
0.45 
0.5O 
0.42 



0.43 



0.43 
0.32 

0.49 
0.44 



0.51 
0.S3 
0.37 
0.32 



0.30 

0.31 
0.48 
0.30 
0.28 



Averaee So.Si^ 



100.0 



115.4 
9T.4 

107.7 
84. S 



123.1 



146.2 
115.4 
128.2 
107.7 



110.3 



U0.3 
82.1 
117.9 
112.6 



92.3 

130.8 
84.8 
94.9 
82.1 



76.9 

79.8 
123.1 
76.9 
71,. 8 



168 



106. For each group of stores, when 
classified by size, the amounts in- 
vested in fixtures per unit of floor 
space are larger for the stores having 
large, than for those having small 



amounts of selling expense in terms 
of sales. An inspection of this table 
will reveal only one exception to the 
general rule and this is based upon 
only one store. 



TABLE 106 

FLOOR SPACE, FIXTURE ACCOUNT, AND AMOUNT OF FIXTURE ACCOUNT PER 100 SQUARE 

FEET OF FLOOR SPACE, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, 1919 





Amoxjnt of 

Selling 

Expense 

per $100 of 

Total 

Net Sales 


Number 

of 
Stores 


Floor Space 
(sq. ft.) 


ABount of 
Fixture 

Account 


Amount of Plxtiire Account per 100 aq. 
of Floor Space 


ft. 


Total 
Net Sales 
(In OOO's) 


Amount 

C 


Per Cent. 


Graphic 
) 20 40 60 80 100 120 140 16C 


Actual 




Total 
(Average ) 


303 


1,422,359 


$1,326,406 


$93.25 


^^^^^^^i 


100.0 






Total 
(Average) 


Under $6 

$6 to $12 
$12 i over 


85 

163 

55 


224,662 
628,792 
368,905 


139,386 
767,735 
419,285 


62.04 
92.63 

113.66 


66. S 

99.3 

121.9 












Total 
(Average) 


45 


97,716 


56, 181 


57.49 


1 


61.7 


Under $40 


Under $6 

$6 to $12 
$12 & over 


20 
22 

3 


41,754 
44,502 
11,460 


17,694 

32,360 

6,127 


42.38 
72.72 
53.46 


45.4 




i 


57.3 




Total 
(Average ) 


113 


347,999 


209,385 


60.17 


64.5 


$40 to $80 


Under $6 

$6 to $12 
$12 S: over 


49 
54 
10 


135,553 

180,121 

32,320 


78,399 

105,227 

25,75:^ 


57.83 
58.42 
79.70 


62.0 
62.6 
85. S 










Total 
(Average) 


102 


511,239 


403,538 


79.91 










$80 to $180 


Under $6 

$6 to $12 
$12 k over 


15 

61 
26 


45,475 
317,017 
148,747 


35,454 
247,450 
125,534 


77.96 

78.05 
84.46 


63.6 
83.7 
90.6 


: 








! 




Total 
(Average) 


43 


465,405 


652,302 


140.15 


150.3 






llSO h over 


Under $6 

$6 to $12 
$12 & over 


1 
25 
16 


1,875 
287,152 
176,378 


7,839 
332,698 
261,765 


418.03 
133.27 
148.41 


448.3* 

142.9 

159.2 
























Average $93.25 

*Full length r 


ot shovs. 



169 



B. — Summary. 

(1). The amounts of selling ex- 
pense per 100 square feet of 
floor space and per $100 of 
total net sales increase as the 
investments in fixtures per 100 
square feet of floor space in- 
crease. This is true for all 
stores and for stores of a 
given size. 

(2). The amounts of selling ex- 
pense per $100 of total net 
sales for the amount sold per 
square foot of floor space de- 
crease as the investments in 
fixtures per 100 square feet 
of floor space increase. This 
holds for all stores and for 
stores classified by size. 

(3). For stores with a given 
amount invested in fixtures 
per 100 square feet of floor 
space, the amounts of selling 
expense in terms of sales alone 
increase, while in terms of 
both sales and amount sold 
per unit of floor space they 
decrease, as the stores in- 
crease in size. 

5. — YEARLY AMOUNTS OF SELLING EX- 
PENSE IN RELATION TO EXPENDI- 
TURES FOR ADVERTISING, FOR STORES 
CLASSIFIED BY YEARS, BY SIZE, AND 
BY LOCATION. 

The term "advertising" as used in 
this section includes expenditures for 
the different methods of advertising 
such as newspapers, billboards, etc.,* 

* See the questionnaire in Volume VI, 
page 597, of the Bureau's study of Costs, 
Merchandising Practices, Advertising cmd 
Sales in the Retail Distribution of Clothing. 



as well as the salaries of the advertis- 
ing employees, such as window trim- 
mers and advertising men. The stores 
which are studied in this section are 
classified for the years in question by 
the amounts of advertising expen- 
ditures in relation to sales. Both 
simple and complex units of measure- 
ment,! of the same general type as 
those which have already been used, 
are employed. 

In the following discussion, chief 
emphasis is given to the conditions in 
1919, although for a limited group of 
stores, comparisons are made between 
the increases in total net sales and 
selling expense for the years 1914, 
1918, and 1919, The order in which 
these topics are discussed is essen- 
tially that used in the foregoing sec- 
tions. 

A. — Yearly Amounts of Selling Ex- 
pense per $100 of Total Net 
Sales and per $100 of Total Ex- 
pense, for Stores Classified by 
Size, 1919, 1918, and 1914. 

Table 107 shows the amounts of 
selling expense per $100 of total net 
sales in 1919 for 282 stores classified 
by size and by the amounts expended 
for advertising in relation to sales. 
It also shows the amounts of selling 
expense per $1 of advertising for the 
stores similarly classified. 

It is hardly necessary to call atten- 
tion to the fact, so often noticed be- 
fore, that the amounts of selling ex- 
pense per $100 of total net sales in- 
crease as the stores increase in size. 

f The methods by which these are com- 
puted are explained on page 4. 



170 



The amounts in which chief interest 
now lies are those for stores with dif- 
ferent amounts spent for advertising 
per $100 of total net sales. It will 
be seen from Table 107 that for all 
the stores and for each group, when 
classified by size, the amounts of sell- 
ing expense per $100 of total net sales 
increase as the amounts expended for 
advertising, similarly expressed, in- 
crease. For the 79 stores which spent 



less than $1 for advertising per $100 
of total net sales, it cost, in 1919, 
$7.07 to sell $100 worth of goods. 
For those which spent from $1 to $2 
for each $100 of sales, the correspond- 
ing figure was $8.46. For the stores 
spending amounts larger than $2 for 
advertising per $100 of total net sales, 
the costs of selling, similarly meas- 
ured, were even higher. How large 
they are for the stores as classified, 



TABLE 107 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES AND PER $1 OF 

ADVERTISING, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF 

ADVERTISING PER $100 OF TOTAL NET SALES, 1919 





AncTmt of 

Aivortlalne 

par tlOO of 

Total 

Kot Ealoa 


KTBTbaP 

of 
Storea 


Eelllae Eipensa par tlOO of Total Bat Salaa 


SalUng Exponaa par ll of Advertialjig 


Total 
Sat ialoa 
(In OOO'e) 


AnouBt 


l*.- Cant. 


Amount 


Pap Oant. 


Oraphlo 1 ^,j^ 
20 40 60 60 lOO 120 140 


*»»"• 1 Aetnal 
20 40 $0 80 100 120 140 160 180 200 220 




Total 
(AToraga) 


232 


tl0.16 




100.0 


$4.81 




100.0 




1 






OtuJar fl 
ill to »2 
12 to»S 
»3t OTor 


79 
100 
68 
S7 


7.07 
8.46 
11.62 
12.55 


69.8 

es.s 

Ut.4 

121.6 


13.29 
6.82 
4.70 
3.02 


294,6» 
129.0 
104.2 
67.0 


Iota! 
<A«raso) 
















! 

1 
1 




Total 
(AT«r>«») 


. SS 


6.00 


69.1 


S.U 


IIS.S 








aid<r«l 

»i tote 

»2 tots 
ys t oTar 


IS 

1« 

e 

2 


f.Ol 
7.12 
B.27 
7.U 


49.S 

70.1 
61.9 
70.0 


8.81 
S.35 
2.15 
£.06 


196.3 
IIS.S 
47.T 
46.7 


(tadar UO 










Total 
(Araraga ) 


106 


7.45 


7S.8 


S.44 


120.8 








mdar tl 
«1 to (»2 
12 to»S 
«S » OTor 


4S 
S7 
20 
6 


6.77 
7.S* 
S.S2 
1S.25 


se.s 

72.2 
91.7 
130.2 


10.06 
6.S5 
4.01 
S«69 


223.1 

iis.a 
ee.a 

81.8 


Ho to Ireo 










' : 




i 






latal 
(AToraga) 


98 


10 .16 


100.0 


6,07 


112.4 










OulaF $1 
ftl ta«e 
fIZ to »9 
its k OTar 


IS 
3» 
26 
IS 


8,74 
S.47 
U.6S 
IS.OZ 


86.0 
83.4 

U4.6 
129.1 


1S.4S 
8.72 
4.89 
3.17 




343.«* 

126.8 
108.4 
70.3 


(teO ts KIBO 


; 














1 
i 








Total 
(ATar««a) 


«S 


U.S6 


111.8 


4.06 


90.0 










Oidar $1 
Itl to »S 
0* to »3 
«• k oiar 


s 
u 

IS 

1« 


7.B2 
9.56 
12.07 
12.12 


78.0 
92.1 

ua.8 

119.S 


22.89 
6. S3 
4.73 
2.94 


607.5* 
140.4 
104.9 
65.2 


(rlBS & OTrr 






1 











AT*r«c* (lo.ie 



Anr««« (4.SJ 



Poll longth not aboiD 



171 



as ■well as the direction of change 
from group to group may be observed 
by consulting Table 107. 

The section of Table 107 which 
shows the amounts of selling expense 
per $1 of advertising presents a some- 
what different picture. For all the 
stores, irrespective of size, the average 
amount of selling expense per $1 of 
advertising was $4.51. Over the 
whole range of store sizes, the amounts 
decrease as the stores increase in size. 
"Within each group of stores, when 
classified by size, moreover, the 
amounts rapidly decrease as the ex- 
penditures for advertising per $100 
of total net sales increase. That is, 
using for illustrative purposes the 106 
stores with annual sales of $40,000 
to $80,000, it costs $5.44 in selling 
expense for each $1 of advertising to 
sell $100 worth of goods. "When the 
expenditure for advertising is less 
than $1 per $100 of total net sales, 
the corresponding selling expense is 
$10.06, and from this as a maximum, 
the amounts decrease to $3.69 for the 
6 stares which spent for advertising 
in relation to their sales $2 and over. 
The same tendency for the amounts 
to decrease characterizes each group 
of stores. Both the direction of 
change and the amounts of expendi- 
ture expressed in this unit may be 
found by consulting the table. 

As has been observed, the amounts 
of selling expense per $100 of total 
net sales are relatively high for the 
large stores. Moreover, advertising 
expenditures per $100 of total net 
sales are also relatively high for the 
large stores. This association is 



brought out in Table 108 which shows 
the amounts of advertising expendi- 
tures per $100 of total net sales for 
stores classified according to amounts 
of selling expense in relation to sales. 
It will be seen from this table that, 
as the stores increase in size, the ad- 
vertising expenditures in terms of 
sales increase and that for stores of 
given size, the amounts of advertising 
expense per $100 of total net sales 
increase as the selling expenses, simi- 
larly measured, increase. This is to 
be expected in view of the fact that 
advertising expenditure is a part of 
total selling expense. The purpose of 
the table is to show the amounts spent 
for this purpose and the tendencies 
for them to change in each of the 
different store-groups. 

Another approach to the study of 
selling expense per $100 of total net 
sales in relation to amounts of adver- 
tising, similarly expressed, is found 
in Table 109. Only one part of the 
table seems to call for attention at 
this place. 

In the right-hand columns, under 
the caption "Selling Expense per 
$100 of Total Net Sales per Stock 
Turnover,"* are shown the different 
amounts of selling expense computed 
in this form for stores of different 
size and with different amounts of 
advertising expenditure per $100 of 
total net sales. Other things being 
equal, the amounts of expenditure for 
advertising should increase both sales 
and the rapidity with which stock is 
turned. The table was constructed 

* The method by which this unit is com- 
puted is explained on page 4, item 19. 



172 



TABLE 108 

AMOUNT OF ADVERTISING EXPENSE PER $100 OF TOTAL NET SALES, FOR STORES 

CLASSIFIED BY SIZE AND BY AMOUNT OF SELLING EXPENSE PER 

$100 OF TOTAL NET SiVLES, 1919 



Classified 

Total 
Net Salea 


Amount of 

Selling 

Excenae 

per ijlOO of 

Total 

llet Sales 


Kumber 

of 
Stores 






Advertising per $100 of Total Hot Sales 


Total 
Het Sales 


Total 

Advertising 

Expense 


Amount 


Per Cent. 


(in 000' b) 


OrapMo . ^ , 
Actual 

J 20 40 60 80 100 120 140 160 




Total 
(Average ) 


282 


535,563,014 


$799,944 


$2.25 




100.0 




■■■■ 


Total 
(Average ) 


Under $6 

$6 to $12 
$12 Jt over 


71 
155 

56 


4,383,266 
21,000,010 
10,179,733 


43,371 
433,232 
323,341 


0.99 
2.06 
3.18 


44.0 
91.5 
141.3 








______ ' 

: 
i 
1 




Total 
(Avoraga) 


33 


1^012,152 


11,888 


1.17 


52.0 


Ohder (40 


Under $6 

$6 to |12 
$12 & over 


17 
14 
2 


519,373 
446,275 
46,504 


4,834 

6,309 

745 


0.93 
1.41 
1.60 


41.3 
62.7 
71.1 




Total 
(Average) 


106 


6,020,400 


82,543 


1.37 


60.9 


|40 to ^3u 


Under $6 

$6 to $12 
§12 8t over 


42 
53 
11 


2,300,377 

3,046,862 

673,161 


19,564 
45,467 
17, 512 


0.35 
1.49 
2.60 


37.8 

66.2 

115.6 








Total 
(Average ) 


93 


11,667,072 


233,690 


2.00 


88.9 







4eo to $180 


Dnder $6 

$6 to $12 
$12 & over 


11 
60 
27 


1,091,299 
7,262,132 
3,313,641 


13,433 
130,555 
89,702 


1.23 
1.80 
2.71 


54.7 
80.0 
120.4 








Total 
(Average) 


45 


16,863,390 


471,823 


2.80 


124.4 






$180 & over 


Under 55 

$6 to $12 
$12 ac over 


1 
28 
16 


472,217 

10,244,741 

5,146,432 


5,540 
250,901 
215,382 


1.17 
2.45 

3.50 


52.0 

103.9 
155.6 











Average $2.25 



in or(ier to place stores on a unit basis 
as respects both sales and rates of 
stock turnover. 

While it cost $10.16, on the aver- 
age, in 1919, to sell $100 worth of 
goods, the corresponding amount per 
turnover was $4.62. For the stores 
which sold in 1919 less than $40,000 
worth of goods, and for which the 



selling expense per $100 of total net 
sales was $6.00, the corresponding 
amount per stock turnover was $4.00. 
For the stores which sold between 
$40,000 and $80,000, the selling ex- 
pense per $100 of total net sales was 
$7.45. The corresponding amount per 
turnover was $4.14. Similarly, those 
that sold from $80,000 to $180,000 



173 



in this year had a selling expense per 
$100 of total net sales of $10.16, and 
per stock turnover of $5.35. The 
selling expense was high in terms of 
sales for the stores which sold in this 
year $180,000 and over. In terms of 
stock turnover, however, it was only 
slightly larger than for those which 
sold between $40,000 and $80,000 



worth of goods. "Within each store- 
group, when classified by size, the 
amounts of selling expense per $100 
of total net sales and per $100 of 
total net sales per stock turnover 
increase as the expenditures for 
advertising increase. 

In Table 110 the order in which 
the data contained in Table 109 are 



TABLE 109 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER STOCK TURNOVER, 

FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF ADVERTISING 

PER $100 OF TOTAL NET SALES, 1919 





Amount of 

Advertising 

per JlOO of 

lotal 

Bet Sales 


Number 

of 
Stores 


Sailing Expense per $100 of 
Total Net Sales 


Selling Expense per $100 of Total Net Sales 
per Stock Turnover 


Classified 

Total 
Net Sales 
<in OOO's) 


Amount 


Per Cent. 


Amount 

C 


Per Cent. 


Graphlo 

1 Actual 
D 20 49 60 60 100 120 140 


Graphlo 

1 Act>ial 
20 40 60 80 100 120 140 160 180 




Total 
(Averoce ) 


282 


$10,16 


1 


100.0 


$4.62 




100.0 






! 

! 


Total 
(Average ) 


Under |1 
$1 to SS 
«2 to S3 
*3 k over 


79 
100 
66 
37 


7.07 
8.46 
11.62 
12.36 


69.6 
83.3 
114.4 
121.6 


3.37 
4.23 
5. OS 
5.15 


72.9 
91.6 
109.3 
111.5 
















j 

i 






Total 
(Average ) 


S3 


6.00 


59.1 


4.00 


86.6 






Under UO 


Under $1 
»1 to $2 
42 to $3 
$3 & over 


15 
14 
2 
2 


6.01 
7.12 
5.27 
7.11 


49.3 
70.1 
51.9 
70.0 


2.95 
5.4a 
2.29 
6.47 


63.9 
118.6 

49.6 
118.4 








i 




Ibtal 
(Average ) 


106 


7.45 


73.3 


4.14 


89.6 




; 


♦40 to 180 


Under $1 

»i to ea 

$2 to *3 
t3 i over 


43 
37 
20 
6 


5.77 
7.54 
9.32 
13.23 


56.8 
72.2 
91.7 
130.2 


3.21 
4.32 
5.18 
7.78 


69.5 
93.5 
112.1 
168.4 




1 
















Total 
(Average) 


98 


10.16 


100.0 


5.35 


115.8 








{80 to tl80 


Under $1 
»1 to t2 
»8 to «3 
tS t over 


IS 
39 
26 
15 


8.74 
8.47 
11.63 
13.12 


86.0 
83.4 
114.5 
129.1 


4.16 
4.23 
6.12 
7.29 


90.0 
91.6 
132.5 
157.8 


1 


i 












. 




1 


1 




Total 
(Avorteo ) 


45 


11. S6 


111.8 


4.06 


87.9 






— - 


$180 4 over 


Under fl 

»1 to e2 

tS to $3 
$3 & over 


3 
10 
18 
14 


7.92 
8.36 
12.07 
12.12 


78.0 
92.1 
118. 8 
119. S 


2.40 
3.60 
4.47 
4.33 




1 






















' 







Average $10.16 



Average $4.62 



174 



presented is reversed. That is, Table 
110 shows the amounts of selling ex- 
pense per $100 of total net sales and 
per $100 of total net sales per stock 
turnover for stores of different size 
with given amounts of advertising 
expenditure per $100 of total net 
sales. AVithin each group of stores, 
classified according to expenditures 
for advertising in relation to sales, 
the amounts of selling expense, ex- 



pressed in terms of sales alone, in- 
crease. In terms of sales per turn- 
over the direction of change in the 
amounts, except for one group of 
stores, is conflicting. The general 
effect, however, from the use of the 
combined unit is to tone down, if not 
wholly to nullify, the increase in the 
amounts when the unit of comparison 
is sales alone. 

Another measure of the amounts of 



TABLE 110 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER STOCK TURNOVER, 

FOR STORES CLASSIFIED BY AMOUNT OF ADVERTISING PER $100 OF 

TOTAL NET SALES AND BY SIZE OF STORE, 1919 



Amount of 
Advertising 
per (100 ot 



Olueifled 

Totaa 
Vat £^00 
(is 000 '■) 



Solllns Bzpsniio par %VX of Total lot Salsa 



Stores Aiiuji.t 



20 40 60 80 100 120 140 



20 40 60 80 100 120 140 160 ISO 



tS to %Z 



%S h I 



Dndsr $40 
(40 to tao 
teo to tiao 

$180 & OTor 



CBdor $40 

iv) to $eo 
Seo to tiso 
(IBO & oTsr 



Dnaer $40 
t40 to $S0 

t£o to $iao 

^180 k over 



Utnlar $40 
$40 to $80 
$80 to $180 

$1£0 & ovsr 



Osdsr $40 
$40 to $80 

$80 to $180 
tieo lE over 



$10.16 



6.00 
7.45 

10. U 
11. S6 



7.07 



5.01 
5.77 
8.74 
7. 02 



8.46 



7.12 
7.54 
8.47 

9.se 



u.e2 



6.27 

s.:2 

11.65 
12.07 



12.55 



T.U 
15.25 

15.12 
12.12 






100.0 



59.1 
75.5 
100.0 
lll'.a 



6S.6 



49.5 
G6.8 
86.0 
79.0 



85.5 



70.1 
72.2 
83.4 

92.1 



U4.4 



51.9 
91.7 
114.6 

iis.a 



121.6 



70.0 
130.2 
129.1 
119.5 



175 



4.00 
4.14 
5.35 

4.06 



5.57 



2.95 
5.21 
4.16 
2.40 



4.23 



£.48 
4.52 
4.25 
5. SO 



s.oe 



2.29 
S.IS 
6.12 
4.47 



5.15 



5.47 
7.7a 
7.29 
4.33 




Averags $4.62 



100.0 



86.6 
89. S 
115.8 
87.9 



72.9 



65,9 

69.6 
90.0 
51.9 



91.6 



118.6 
93.5 
91. S 
77.9 



109.5 



49.6 
112.1 
15S.S 

96.8 



lU.S 

lis .4 
168.4 
187.8 
95.7 



TABLE 111 



AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER AMOUNT SOLD 
PER $1 OF A\'ERAGE INVENTORY, 1918 AND 1919, FOR STORES CLASSI- 
FIED BY SIZE AND BY AMOUNT OF AD\nERTISING PER 
$100 OF TOTAL NET SALES, 1919 





Anount of 

/IdYortHlna 

por 1100 of 

Tot»l 

Cot S«lea 


KiE^bor 

or 
Storoa 


Eolllng Qtponao por tloo of Total Not SAlsa 


BoUlng Bxponso por tlOO of Total Not Saloa por Anont 
Sold par $1 of Avarago Inventory, 1918 and 1919 


Ict»l 


ABoont 

< 


For Cont. 


Amount 


Par Cent. 


(la 00(J^») 


20 40 60 60 100 120 140 


*■*"» 1 Actual 
3 20 40 60 80 100 100 140 160 IBO 




Tot.a 
(AvorKGo) 


233 


tlO.16 




lOO.O 


tJ.lS 




100.0 










Ckulor (1 
♦I to (2 
»S to »3 

|3 k ovor 


TO 

100 
66 

n 


7.07 
0.46 

12.55 


e9.6 

es.s 

114.4 
121.6 


2.42 
2.88 
3. 56 
3.54 


77.3 
92.0 
107.3 
106.7 


Itotal 
(iverftgo) 














■"■^■^l* 






TotU 
(AT«r>ee) 


3S 


e.oo 


E9.1 


2.60 


89.5 






Uudtr Uo 


Ifailor tl 
«1 to»2 
|2 t. »S 
«S » o«r 


15 
14 

t 

e 


S.Ol 
7.12 
6.27 
T.ll 


49.5 
70.1 
61.9 
70.0 


2.08 
5.93 
1.63 
3.S4 


66.S 
125.6 
48.9 




^^__ 






113.1 




i 




Total 
(Avorft^v ) 


IM 


7.<5 


73.3 


2.94 


»S,» 






Ko to tao 


Dnaor tl 
»1 to (2 
(2 to (> 
»S I o„r 


43 

37 
20 
6 


S.77 
7.34 
9.32 
13.23 


£6.8 
72.2 
91.7 
130.2 


2.25 

3.02 
3.67 
5.25 


71.9 
96.3 
U4.1 

167.7 














^J 






Iot>l 
(Avorago) 


se 


10.16 


100.0 


5.63 


112.8 






1 




Ucaer (1 
«1 to »2 
M to »S 
»S (k o«r 


IS 
39 

se 

IS 


8.74 

e.47 

U.65 
13.12 


86 .0 

es.4 

114.3 
129.1 


2.89 
2.93 
4.00 
4.93 


92.3 
93.6 
127.8 
157.5 


(60 io lieo 




; 








. 






: 






Total 
Uioraeo) 


4S 


U.S6 


ui.e 


2.71 


86.6 










DBilor }1 
»1 to tZ 
»2 to tS 

tS & ovar 


3 
10 
IS 
14 


7.92 
9.36 
12.07 
12.12 


78 .0 
92.1 
118.8 
U9.S 


1.73 
2.39 
2.96 
2.76 


65.3 
76.4 
94.6 
87.9 


(ISO <> cnr 






. 






I 







Average $X0.16 



^AT«ra^ l^iU 



selling expense per $100 of total net 
sales for stores classified by the 
amounts expended for advertising is 
found in Table 111. The amounts are 
expressed for each unit sold per $1 
of average inventory, 1918 and 1919.* 
It will be recalled from an earlier 
discussion, that inventories in terms 

* The methofl by which this unit is com- 
puted is exijlained on page 4, item 18. 



of sales are relatively low in the large 
stores. Moreover, the amounts of 
both advertising expense and selling 
expense per $100 of total net sales 
have been found to be relatively high 
in these stores. Accordingly, when 
the stores are classified by size and 
the amounts of selling expense per 
$100 of total net sales for each 
amount sold per $1 of average in- 



176 



ventory, 1918 and 1919, are calcu- 
lated, they are found to increase as 
the size of the stores increases, but 
by smaller amounts than selling ex- 
penses when they are expressed in 
terms of sales alone. The amounts 
of selling expense, when measured in 
terms of sales and in terms of sales 
for the amount sold per $1 of average 
inventory, 1918 and 1919, increase 
as the amounts spent for advertising 
per $100 of total net sales increase. 
The increases are greater when the 
amounts of selling expense are ex- 
pressed in terms of the simple, rather 
than the complex, unit. 

Table 111, like the tables which 
precede it, serves two purposes : First, 
to give the actual amounts of selling 
expense expressed in two ways; and, 
second, to illustrate increases or de- 
creases in the amounts for stores when 
classified in the manner shown. 

The relative increases in total net 
sales and selling expense between 
1914 and 1918, and 1918 and 1919 for 
a group of stores having annual sales 
between $20,000 and $40,000 are 



shown in Table 112 when the stores 
are classified with respect to the 
amounts of advertising expenditure 
per $100 of total net sales in 1914. 

Between 1914 and 1919, for the 60 
stores included, sales increased 113.7 
per cent., while total selling expense 
increased 79.9 per cent. When the 
amounts of selling expense are ex- 
pressed in terms of sales, the average 
amount decreased 15.9 per cent, be- 
tween 1914 and 1919. A decrease of 
9.2 per cent, in the average amount 
of selling expense in relation to sales 
occurred between 1914 and 1918. 
This is the condition for the stores 
irrespective of the amounts expended 
for advertising in relation to sales. 
When the stores are classified accord- 
ing to the amounts of advertising 
expenditure per $100 of total net 
sales in 1914, the percentages of de- 
crease in selling expense per $100 of 
total net sales between 1914 and 1918 
vary inversely with the amounts ex- 
pended for advertising in relation to 
sales. For the stores spending less 
than $1 per $100 of total net sales, 



TABLE 112 

RELATION OF SELLING EXPENSE TO TOTAL NET SALES, 1919, 1918, AND 1914, FOB 

STORES HAVING SALES FROM $20,000 TO $40,000 IN 1914, CLASSIFIED BY 

AMOUNT OF ADVERTISING PER $100 OP TOTAL NET SALES, 1914 



fcDOTmt of 


SiBsbep 

of 
BtopeB 


Total Bet Beleo 


Total BelllQg Expense 


SeUlDg Ezpenae par ♦lOO of 
Total Set Salee 


per »100 of 

Tot.l 

Set EaleB 

1914 


1914 


1918 


1919 


1914 


191fl 


1919 


1914 


1918 


1919 


^t 


Aaount 


Per Cent, 
Increeee 
o»er 1914 


toount 


for Cent, 
locreaae 
over 1914 


ABOV&t 


Aaount 


Per Cont. 
Increase 
omr 1914 


._t 


Per Cent. 
Inereaae 
over 1914 


Anount 


Jjaoont 


Por Cent. 
3ecreaae 
rron 1914 


taaoxmt 


Deoreaae 
free 1914 


ToMl 
(Averftgo) 


60 


♦1,721,456 


»2,60e,966 


61.6 


t5,679,474 


115.7 


»I55,557 


♦213,762 


3T.6 


♦279,457 


79.9 


♦9.02 


♦a. 19 


. 9.2 


♦T.6» 


15.8 


Ondor tl 
♦1 to»S 
12* OVM- 


16 
24 
20 


479,026 
665,167 

679,26: 


666,409 

1,014,242 

928,5JS 


39.1 

ee.9 

60.5 


997,620 
1,406,492 

1,275,162 


108.3 
UZ.l 
120.1 


51,704 
Ce,9]2 
05,921 


4i<ee4 

£4,165 
87,745 


53.0 
44.3 

54.5 


65,021 
US, 755 
U0,665 


67.8 
96.5 
69.4 


6.62 
8.78 
11.28 


6.28 
8.30 
9.45 


6.1 
5.6 
16.2 


6.51 
8.25 
8.68 


19.3 
6.« 
25.0 



177 



the decrease was 5.1 per cent. ; for 
those spending between $1 and $2 it 
was 5.6 per cent. ; and for those spend- 
ing $2 and over, 16.2 per cent. Simi- 
lar, but less uniform, decreases in the 
amounts of selling expense per $100 
of total net sales are shown for the 
year 1919 over 1914 in relation to the 
amounts spent for advertising per 
$100 of total net sales. Those which 
spent less than $1 for advertising in 
relation to sales, decreased their sell- 
ing expense, similarly measured, 19.8 
per cent. ; those which spent $1 to $2 
decreased their selling expense 6.4 
per cent., and those which spent $2 
and over decreased their selling ex- 
pense per $100 of total net sales 23.0 
per cent. 

It is not maintained that this table 
proves that the increased advertising 
expenditure caused the decrease of 
selling expense in relation to sales. 
It points to this conclusion, however, 
in view of the fact that between each 
of the years— 1914 and 1918, and 
1918 and 1919 — the general tendency 
was for the decreases to become larger 



as the expenditures for advertising in 
terms of total net sales increased. 

It should be observed that the stores 
in Table 112 are classified according 
to the amounts expended for adver- 
tising in 1914 and that four years 
elapsed between 1914 and 1918, and 
a single year between 1918 and 1919. 
Obviousl}^ factors other than adver- 
tising may have influenced the per- 
centages of increase in sales and sell- 
ing expense and the percentages of 
decrease in selling expense in terms of 
sales. 

The method of analysis, used in 
Table 112, is followed in Table 113 
for a group of stores which had in 
1918 sales between $40,000 and $60,- 
000. The purpose of this table is to 
show the relation, if any, between the 
amounts expended for advertising in 
terms of sales in 1918 and the extent 
to which selling expense in terms of 
sales decreased in 1919 as compared 
with 1918. Brief references to the 
details of this table will show the 
nature of this relationship for the 60 
stores involved. Total net sales in- 



TABLE 113 

RELATION OF SELLING EXPENSE TO TOTAL NET SALES, 1919 AND 1918, FOR STORES 

HAVING SALES FROM $40,000 TO $60,000 IN 1918, CLASSIFIED BY AMOUNT 

OF ADVERTISING PER $100 OF TOTAL NET SALES, 1918 



Amount of 


Hunber 

of 
Stores 


Total Net Sales 


Total Selling Expense 


Selling Expense per $100 of 
Total Net Sales 


Advertising 

por $100 of 

Total 

Met Sales 

1918 


1918 


1919 


1918 


1819 


1918 


1919 


Aiaount 


Per Cent. 
Increaee 
over 1918 


Amount 


Per Cent. 
Increase 
over 1918 


Amount 


Per Cent. 
Decrease 
from 1918 


Total 
(Average) 


60 


$2,969,556 


$4,299,028 


44.8 


$243,612 


$327,559 


34.5 


$8.20 


$7.62 


7.1 


Dnder tl 
$1 to $2 
J2 4 over 


23 
22 
15 


1,151,959 

1,079,477 

738,122 


1,672,332 
1,581,042 
1,045,654 


45.2 
46.5 
41.7 


69,911 
93,513 
60,188 


98,569 
125,676 
103,312 


41.0 
34.4 

ea.s 


6.07 
8.66 
10.86 


5.89 
7.95 
9.89 


3.0 
8.2 
8.9 



178 



creased between 1918 and 1919 by 
44.8 per cent. Simultaneously, sell- 
ing expense increased 34.5 per cent. 
The result is that selling expense per 
$100 of total net sales decreased 7.1 
per cent. When the stores are clas- 
sified according to the amounts ex- 
pended for advertising per $100 of 
total net sales in 1918, the percentages 
of decrease become successively larger 
as the expenditures for advertising in 
relation to sales increase. For the 
stores which spent least, that is, under 
$1, the percentage of decrease be- 
tween 1918 and 1919 was 3.0. For 
those that spent between $1 and $2, 
the corresponding percentage of de- 
crease was 8.2, and for those which 
spent $2 and over, the decrease was 
8.9 per cent. That is, as the amounts 
expended for advertising in terms of 
sales in 1918 increase, the percentages 
of decrease in selling expense per $100 
of total net sales between 1918 and 
1919 become larger. It will be noted 
from this table that the size of the 
stores involved in each of the years is 
substantially the same, hence store- 
size does not explain the decrease to 
which attention is called. The same 
observation applies to the detail in 
Table 112. 

If Tables 112 and 113 are consid- 
ered as a unit, it seems reasonable to 
conclude that for the stores in ques- 
tion, relatively large amounts of ad- 
vertising expenditure in terms of sales 
accompany, if they do not determine, 
large decreases in selling expense in 
terms of sales. Obviously, there is a 
limit beyond which amounts of sell- 
ing expense per $100 of total net sales 



cannot be reduced by increasing ex- 
penditures for advertising. What that 
limit is, the tables do not reflect. 
Neither can they be used to prove that 
large amounts of advertising expendi- 
ture will reduce selling expense. They 
do show, however, a definite relation- 
ship between advertising expenditures 
and selling expense which could 
hardly have occurred with the regu- 
larity shown in the tables without 
some close, if not causal, relationship 
existing between them. 

In confirmation of the conclusions 
drawn from Tables 112 and 113, 
Table 114 is presented. The basis for 
the classification of the 154 stores is 
the amounts expended for advertis- 
ing per $100 of total net sales in 1914, 
but no account is taken of store size. 
In interpreting this table, it should 
be remembered that the larger the 
store, other things being equal, the 
greater the increase in total net sales 
from year to year. Similarly, the 
larger the store, the greater the in- 
crease in selling expense from year to 
year. Moreover, it should be borne 
in mind, generally speaking, that the 
larger the store, the greater the ex- 
penditure for advertising per $100 of 
total net sales. Accordingly, when 
the stores are grouped irrespective of 
size and are classified by amounts ex- 
pended for advertising per $100 of 
total net sales, the seeming effect of 
advertising expenditures on the 
amount of selling expense in relation 
to sales may be due, in part at least, 
to the size of the store. It has been 
thought worth-while, however, in 
spite of the limitations of such a clas- 



179 



sification, to present Table 114 be- 
cause, in a general way, it confirms 
the conclusions drawn from Tables 
112 and 113. 

For the 154 stores, the amounts of 
sales for the entire group increased 
between 1914 and 1918 by 59.4 per 
cent, and between 1914 and 1919 by 
126.4 per cent. The corresponding 
percentage increases in selling ex- 
pense between the respective years 



the amounts expended for advertising 
increase. Similar conditions obtain 
for the percentage increases in selling 
expense for the respective years. 
When the amounts of selling expense 
are shown in terms of total net sales, 
however, the percentage decreases 
become larger as the amounts spent 
for advertising in terms of sales in- 
crease. To this general rule, between 
1914 and 1918, there is but one im- 



TABLE 114 

RELATION OP SELLING EXPENSE TO TOTAL NET SALES, 1919, 1918, AND 1914, FOB 

STORES CLASSIFIED BY AMOUNT OF ADVERTISING PER $100 

OF TOTAL NET SALES IN 1914 





Number 

of 
Etorea 


Total Net Sole. '^^SJpSSjJ"^ 


Selllrg Expense per $100 of Total Hat Sale* 


Advertising 

per tlCO of 

Total 


Par Cent. Increase 
over 1914 


For Cent. Xacrcaet) 
over 1914 


Anoutt 


Per Cent. CbanM 
from 1914 


Het Sales 
1914 


1918 


1919 


1918 


1919 


1914 


1918 


1919 


1918 


1919 


Total 
(Average) 


154 


59.4 


126.4 


51.9 


loe.o 


$11.48 


SlO.94 


$10.44 


-4.7 


-9.1 


Under $1 
|1 to $2 
is to S3 
tS i over 


27 
52 
56 
59 


50.7 
56.5 

44.6 
7S.4 


93.1 
114.6 
112.7 
351.8 


54.2 
45.9 
4S.S 
61.4 


84.4 
100.9 

99.1 
117.6 


6.62 

9.85 

10.79 

14.49 


6.30 

9.17 

10.70 

13.C9 


6.17 

9.20 

9.79 

12. SI 


+2.7 

-6.7 

-0.8 

-10.1 


-6.6 
-6.4 

-9.S 
-15.7 



were 51.9 and 106.0. When the 
amounts of selling expense are deter- 
mined for each $100 of total net sales, 
they are found to have decreased be- 
tween 1914 and 1918 by 4.7 per cent, 
and between 1914 and 1919 by 9.1 per 
cent. 

When the stores are classified by 
expenditures for advertising per $100 
of total net sales, the percentage in- 
creases in sales become larger between 
1914 and 1918, and 1914 and 1919, as 



portant exception. Between 1914 and 
1919 the percentage decreases, with 
an unimportant exception, become 
larger as the amounts spent for ad- 
vertising increase. For the stores 
which spent least for this purpose, 
the amounts of selling expense per 
$100 of total net sales decreased be- 
tween 1914 and 1919 by 6.8 per cent., 
while for those which spent most, that 
is, $3 and over, the corresponding de- 
crease was 13.7 per cent. 



ISO 



Tables 112 to 114, inclusive, should 
be considered in the light of the dis- 
cussion concerning them. In Table 
114 the elements which determine the 
decreases in selling expense are less 
likely to be the amounts spent for 
advertising than in the other tables. 

The amounts of selling expense for 
stores classified by size and by expen- 



ditures for advertising per $100 of 
total net sales may also be shown in 
terms of total expense and in terms 
of total expense per stock turnover. 
This is done in Table 115. So far as 
any unmistakable tendency for the 
amounts to increase or decrease under 
different conditions of advertising ex- 
penditure is concerned, the results of 



TABLE 115 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL EXPENSE PER STOCK TURNOVER, 

FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF ADVERTISING 

PER $100 OF TOTAL NET SALES, 1919 





Amoujit of 

Advertlelng 

per tlOO of 

Total 

Met Salee 


Hiaabor 

of 
Storee 


Selling Expenae per $100 of Total Expense 


Selling Eipenae per $100 of Total Expense per Stock 
Turnover 


Total 


Ajaount 


Per Cent. 


Amount 


For Cent. 


(In OOO'b) 


"''P"^ 1 Actual 

D 20 40 60 60 100 120 


Oraphlo 

^ Actual 

D 20 40 to eo 100 120 140 160 




Totai 


282 


$46.74 






100.0 


$22.15 


1 


100.0 




Older $1 
H to $2 
«2 to tS 
|3 i over 


79 
100 
66 
S7 


45.42 

47.06 
51.60 
49.15 




89.1 
96.6 

105.9 
100.6 


20.68 
23.53 
22.43 

20.48 






Iot«l 
(Average) 




'"^^^''""""' ! 


106.2 
101.9 
92.5 






















Total 
(Average) 


5S 


55.10 


72.0 


23.40 


105. f 




IHHM^H • 




tMder $1 
*1 to ȣ 
12 to *3 
^ & over 


15 
14 
2 
2 


34.55 

39. OS 
24.24 
28.76 


70.9 
80.1 
49.7 
59.0 


20.32 
30.04 
10.54 
22.12 


91.7 
135.6 
47.6 
99.9 


Under $40 


: 






I 








Total 
(Average) 


106 


41.79 


85.7 


25.22 


104.8 






1 




Under ti 
»1 to $2 
»2 tots 
*5 4 over 


43 

57 
20 

S 


37.87 
40.49 
45.16 
54.15 




77,7 
83.1 
92.7 
Ul.l 


21.04 
23.82 
25.09 
31.84 


95.0 
107.5 
113. S 
143.7 


(40 to (80 




























Totaa 
(Average ) 


98 


61.66 




. 


106.0 


27.19 


122.8 






i 




Older tl 
|1 to $2 
$2 to »S 
»5kover 


IB 
39 
26 

15 


60.87 
48.19 
54.10 
54.45 


104.4 
98.9 
UO.O 
111.7 


24.22 
24.10 
28.47 

30.24 


109.3 
108.8 
128.5 
136.5 


$80 to $180 
























1 
: 




Totai 
(Average ) 


45 


49.53 






101.7 


17.70 


79.9 








Under Jl 
»1 to J2 
t8 to »3 
»S i over " 


5 
10 
18 
14 


44.09 
50.83 
61.66 
47.57 


90.5 
104.3 
106.0 

97.0 


13.36 
19.55 
19.13 
16.9» 


60. » 
86.3 
86.4 
76.7 


$1£0 & over 






1 



















Average $48.74 



Average $22.15 



181 



the table are inconclusive. The actual 
amounts, however, are of interest and 
for this reason the table is included in 
this study. 

B. — Yearly Amounts of Selling Ex- 
pense per $100 of Total Net Sales 
and per $100 of Total Expense, 
for Stores Classified hy Size of 
City in Which Located* 1919. 

When the 282 stores are classified 
according to their location in two city- 
groups and by the amount of adver- 
tising expenditure per $100 of total 
net sales, as in Table 116, it is found 

* Population fibres are for 1920. 



that the amounts of selling expense 
per $100 of total net sales are less for 
the stores in the small cities than for 
those in the large cities, when treated 
as a total and when classified by the 
amounts expended for advertising in 
relation to sales. To this general rule 
there are no exceptions. It should be 
noted that no attention is paid in this 
connection to the size of the stores, 
except as it is indirectly reflected in 
the amounts expended for advertising 
per $100 of total net sales. With this 
in mind, it is difficult to assign, as be- 
tween expenditures for advertising 
and the size of the stores, the causes 
for these increases. It is sufficient at 



TABLE 116 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER STOCK TURN- 
OVER, FOR STORES CLuVSSIFIED BY SIZE OP CITY AND BY AMOUNT OF 
ADVERTISING PER $100 OF TOTAL NET SALES, 1919 





Amount of 

Advertising 

per tlOO of 

Total 

Hat Sales 


of 
Stores 


Selling Expense per $100 of Total 
Mat Sales 


Selling Expenoo per $100 of Total Net Soles 
per stock Turnover 


of 


Amount 

( 


Per Cent. 


Arcount 

< 


Per Cent. 


(In OOO'i) 


(jTophlc 
) 20 40 60 80 100 120 140 


Actual 


Oraphlc 
) 20 40 60 80 100 120 140 160 


Aetud 




Total 
(Average) 


282 


tlO.16 




100.0 


$4.62 




100.0 




1 




Total 
(Avorogo ) 


Under il 
»1 to %Z 
»2 to $3 
J3 i over 


79 
100 
66 
37 


7.07 
8.46 
11.62 
12.35 


69.6 
83.3 
114.4 
121.6 


3. 37 
4.23 
5.05 
5.15 


72.9 
91.6 
109.9 
111.5 


i 






■ 






• 






Total 
(Average ) 


204 


8.61 


84.7 


4.53 


98.1 








Under 


Under tl 
»1 to $2 
*2 to t3 
to Ik over 


72 
79 
39 
14 


6.79 
8.27 
10.37 
11.95 


66.8 
81.4 
102.1 
117.6 


3.39 
4.59 
5.76 
7.03 


73.4 
99.4 
124.7 
152.2 






















Total 
(A/orace) 


78 


11.55 


113.7 


4.44 


96.1 










Ondor $1 
tl to tS 
52 to ta 
$3 » ovor 


7 
21 
27 
23 


8.70 
8.81 
12.36 
12.41 


05.6 
86.7 
121.7 
122.1 


3.48 
3.52 
4.75 
4.77 


75. S 
76.2 
102.8 
103.2 


40 and 


; 




I 




; 








' ' 



ATarage tioue 



Avoroge $4.S2 



182 



this time to call attention to the fact 
as stated. 

When the amounts of selling ex- 
pense per $100 of total net sales are 
computed for each stock turnover, the 
average amount is higher for the 
stores in the small than for those in 
the large cities, and this condition 
obtains with one exception for the 
stores with the same amount of ad- 
vertising, but located in different- 
sized cities. That is, while the 
amounts of selling expense per $100 
of total net sales are generally higher 
for the stores in the large cities, the 
high turnover in these stores serves 
to compensate for this disadvantage, 



thus making the amounts smaller per 
stock turnover. 

The association between the amounts 
of advertising expenditure per $100 
of total net sales and the amounts of 
selling expense, similarly expressed, 
for stores classified by location is 
brought out in Table 117. This table 
shows first, that the amounts of adver- 
tising per $100 of total net sales are 
higher for the stores in the large than 
for those in the small cities, both 
when treated as a total and when con- 
sidered by amounts of selling expense 
per $100 of total net sales. Second, 
in both of the city-groups the amounts 
of advertising expenditure per $100 



TABLE 117 

TOTAL NET SALES, ADVERTISING EXPENSE, AND AMOUNT OF ADVERTISING PER $100 

OF TOTAL NET SALES, FOR STORES CLASSIFIED BY SIZE OF CITY AND BY 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, 1919 



size 


Ainoimt of 

Selling 

Emonee 

per ?1C0 of 

Total 

Net Sales 


Number 

of 
Stores 


Total 
Net Sales 


Total 

Advertising 

Expense 


Advertising per JlOO of Total Net Sales 


of 

City 

(In 000' s) 


Amount 


Per Cant. 


Craphl c 1 

1 Actual 

D 20 40 60 80 100 120 140 160 160 




Total 
(Average ) 


282 


$35,565,014 


{799,944 


$2.25 




100.0 




i 
■■■■" 


Total 
(Average ) 


Under $6 

$6 to $12 
§12 & over 


71 

155 

56 


4,585,266 
21,000,010 
10,179,738 


43,571 
433,232 
323, 541 


0.99 
2.06 
5.18 


44.0 
91.6 
141.3 








^^m 




Total 
(Average) 


204 


16,862,679 


267,754 


1.59 


70.7 


Dnder 
40 


Under J6 

56 to $12 
$12 k over 


66 
110 
28 


3,639,885 
10,203,111 
3,019,683 


35,495 

167,092 

65,167 


0.98 
1.64 
2.16 


43.6 
72.9 
96.0 








i 




Total 
(Average ) 


78 


18,700,335 


532,190 


2.85 


126.7 






40 and 
over 


Dnder J6 

$6 to $12 
$12 & over 


5 

45 

' 28 


743,381 
10,796,899 
7,160,055 


• 7,875 
266,140 
258,174 


1.06 
2.46 
3.61 


47.1 
109.3 
160.4 











AtacAifi. is .25 



183 



of total net sales increase directly 
with the amounts of selling expense 
per $100 of total net sales. 

In Table 118 the amounts of sell- 
ing expense for stores classified by 
size of city and by the amount ex- 
pended for advertising in relation to 
sales are shown first as proportions 
of total expense and second, in rela- 
tion to total expense per stock turn- 
over. "Within each city-group and 
for the total, the amounts of selling 
expense per $100 of total expense in- 
crease with a few exceptions as the 
amounts expended for advertising per 
$100 of total net sales increase. When 
the size of the city alone is considered, 



the amount of selling expense per 
$100 of total expense is lower in the 
small than in the large cities, although 
group by group, the average amounts 
are larger in the stores in the small 
than for those in the large cities. 
When the amounts are expressed in 
terms of stock turnover, they are 
higher in the small than in the large 
cities for the stores as a total and for 
the individual groups. The latter 
condition is due primarily to the slow 
turnover which characterizes the 
stores in the small cities. 

The tendencies for the amounts, as 
shown in Table 118, to increase or 
decrease are inconclusive in some re- 



TABLE 118 

AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL EXPENSE PER STOCK TURNOVER, 
FOR STORES CLASSIFIED BY SIZE OF CITY AND BY AMOUNT OF ADVER- 
TISING PER $100 OF TOTAL NET SALES, 1919 



Salllne Exp«nae per *100 of Tot»l txpcnao 



Graphic 
30 40 60 BO 100 130 



?0 40 00 90 100 120 140 160 



Total 



(AV.T 



Ur.ler $1 
$1 to C2 
J2 to »3 
C^ fc ovor 



Totol 
(Aver'-;o 1 



Undor il 
tl to 12 
J2 to J3 
tS & over 



Dixlor }1 
fl to J2 
» to C3 

^ * over 



}4a.7i 



4:j.42 

47. OG 
51.00 
49.15 



49. J3 



44. C4 

47.60 
50.82 
54.26 



51. J9 
48.44 



100.0 



89.1 
96.6 
105.9 
100.8 



91.0 
97.7 
104.3 
111.3 



100.0 



79.2 
J4 .7 
IOC. 7 
^9.4 



22. 4J 
20. 4S 



26.44 
28.23 
J1.92 



13.85 



15.45 

ia.4c 

20.00 

10. c: 



100.0 



93.4 

ioe.2 

101.3 
92.5 



114.9 

100. B 
119.4 
127.4 
144.1 



85.1 



C9.0 
83.3 
90.3 
04.1 



Avoraf^o ;^.74 



90.3 



184 



spects. This, however, does not de- 
tract from the value of the table for 
the second purpose for which it is 
prepared, namely, to show norms or 
standards of selling expense distribu- 
tion, as measured by simple and com- 
plex units. In many respects the 
more refined the measure used to ex- 
press the amounts of selling expense, 
the more significant become the re- 
sults. 

C. — Summary. 

(1). For all stores and for stores 
classified by size, the amounts 
of selling expense per $100 of 
total net sales increase as the 
amounts of advertising per 
$100 of total net sales in- 
crease. 

(2). The amounts of selling ex- 
pense per $100 of advertising 
decrease as the amounts of 
advertising per $100 of total 
net sales increase. This holds 
for all stores and also for 
stores of a given size. 

(3). When stores are classified by 
size and by expenditures for 
advertising, the amounts of 
selling expense per $100 of 
total net sales and per $100 
of sales per stock turnover 
increase as the expenditures 
for advertising increase. 

(4). For stores with a given ex- 
penditure for advertising per 
$100 of total net sales, the 
amounts of selling expense 
per $100 of total net sales and 



also per $100 of total net sales 
per stock turnover increase as 
the stores increase in size. 

(5). For stores of a given size, 
selling expenses per $100 of 
total net sales for the amount 
sold per $1 of average in- 
ventory, increase as the 
amounts of advertising per 
$100 of total net sales in- 
crease. 

(6). From year to year, for stores 
of a given size, relatively 
high amounts of advertising 
expenditure in terms of sales 
accompany large decreases in 
selling expense in terms of 
sales. 

(7). In terms of total expense and 
of total expense per stock 
turnover, the amounts of 
selling expense show no de- 
cided tendency either to in- 
crease or to decrease as the 
amounts of advertising per 
$100 of total net sales in- 
crease. 

(8). Selling expense in terms of 
sales alone is higher for stores 
in large cities than it is for 
those in small cities. In terms 
of sales per stock turn- 
over, the amount is higher 
in small than in large cities. 
This holds for all stores and 
for stores with a given amount 
of advertising per $100 of 
total net sales. 

(9). For stores with a given 
amount of advertising ex- 



185 



penditure per $100 of total small cities than it is for 
net sales, selling expense in stores in large cities, 
terms of total expense is (jj) In both small and large cities, 
higher in small than m large ^^^^-^^ expenses in terms of 
^^*^^®- total expense alone and of 
(10). Selling expense in terms of total expense per stock turn- 
total expense per stock turn- over increase as the amounts 
over is higher for stores in of advertising per $100 of 

total sales increase. 



186 



IV. WAGES AND SALARIES CHARGEABLE TO SELLING 



1. ^AMOUNTS OF WAGES AND SALARIES 

FOR STORES CLASSIFIED BY YEARS, 
BY SIZE, AND BY LOCATION. 

"Wages and salaries" includes all 
forms of compensation paid to regular 
and extra salesmen and that part of 
the compensation of proprietors, 
bookkeepers, and others which is 
properly chargeable to selling. In 
some of the small stores it was impos- 
sible to apportion the salaries paid to 
proprietors according to the functions 
performed, and in such cases the en- 
tire salary is included. This fact will 
help to explain, in some instances, the 
size of the amount of wages and sal- 
aries expressed in terms of sales and 
selling expense for the group of 
stores with small annual sales. It is 
felt, however, that the error does not 
seriously affect the totals inasmuch as 
most, if not all, of the time of the 



proprietors in the very small stores is 
given to selling or to supervising sell- 
ing. 

A. — Yearly Amounts of Wages and 
Salaries per $100 of Total Net 
Sales and per $100 of Selling 
Expense, 1919, 1918, and 1914. 

The records of 154 identical stores 
for the years 1914, 1918, and 1919 are 
available for the study of the amounts 
of wages and salaries chargeable to 
selling. In Table 119 these amounts 
are expressed in terms of sales. In 
1914 it cost $7.52 in wages and sal- 
aries to sell $100 worth of goods. In 
1918 it cost $7.37, and in 1919, $6.98. 
That is, between 1914 and 1918, and 
1918 and 1919, the amounts relative 
to sales decreased. 

For the 154 stores, as is shown in 
Table 120, the average amount of 
total net sales per store increased be- 



TABLE 119 

TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OP WAGES AND SALARIES 
PER $100 OF TOTAL NET SALES, FOR 154 IDENTICAL STORES, 

1919, 1918, AND 1914 





Number 

of 
Store- 
yeare 


Total 
Net Sales 


Total 
Wages & 
Salaries 


Wages and Salaries per $100 of 
Total Net Sales 


Years 


AmoTint 


Per Cent. 




'^^^P^^^ Actual 
) 20 40 6,0 80 100 120 


Total 


462 


$44,835,499 


$3,255,181 


$7.22 


! 


100.0 


(Average) 


: 


1919 
1918 
1914 


154 
154 
154 


20,892,764 

14,714,515 

9,228,220 


1,457,504 

1,084,125 

693,552 


6.98 
7.37 
7.52 


96.7 
102.1 
104.2 


1 


1 


\ 



Average $7,22 



187 



TABLE 120 



AVERAGE AMOUNT AND PER CENT. INCREASE OR DECREASE OP TOTAL NET SALES AND 

WAGES AND SALARIES PER STORE, AND AMOUNT OF WAGES AND SALARIES 

PER $100 OF TOTAL NET S.VLES, FOR 154 IDENTICAL STORES, 

1919, 1918, AND 1914 





AV«r>gs ABount of Total Nat Salss 
p«r 3tor« 


Average Ajuount of Uocoa and Salaries 
por itora 


Average Amount of toa^ea and Salaries 
per tlOO of Total Hat Sales 


T«ftrf 


Jbwnuit 


P«r Cant. Increoaa over 1914 


Amount 

3 


Par Cent. InereaBe over 1914 


Amount 


Per Cent. Decrease from 1914 




1 Graphic 
Aetiul ' 

20 40 C-J 30 ICO 120 11 


Graphic 
Aatual 1 

9 20 40 60 80 100 120 


Graphic 
20 40 CO 80 100 120 




9i,649 
59,924 


12(;.4 

59.5 




J9,'!64 
7,040 
4,504 


110.1 
60. 3 




•«.9e 

7.S7 
7.52 


7.2 
2.0 




1916 
1914 






3 



tween 1914 and 1918 by 59.5 per cent. 
and between 1914 and 1919 by 126.4 
per cent. The corresponding per- 
centages of increase in wages and 
salaries for the respective years were 
56.3 and 110.1. That is, in 1918 and 
1919, when compared with 1914, for 
the same stores, wages and salaries 
increased less than total net sales. 
Accordingly, when the amounts of 
wages and salaries per $100 of total 
net sales are determined for the stores 
in the different years, the percentage 
of decrease between 1914 and 1918 is 
2.0 and between 1914 and 1919, 7.2. 

Simultaneous with the increases in 
wages and salaries, total selling ex- 



pense for the same stores increased 
51.9 per cent, between 1914 and 1918, 
and 106.0 per cent, between 1914 and 
1919. When the amounts of wages 
and salaries are expressed per $100 
of selling expense the average amount 
in 1914 was $65.47, in 1918 $67.35, 
and in 1919 $66.80. That is, between 
1914 and 1918 the amounts increased 
2.9 per cent, and between 1914 and 
1919, 2.0 per cent. These amounts 
are shown in Table 121, 

Summarizing Tables 119 to 121, in- 
clusive, one may conclude first, that 
the amounts of wages and salaries per 
$100 of total net sales decreased be- 
tween 1914 and 1918, and 1918 and 



TABLE 121 

AVERAGE AMOUNT AND PER CENT. INCREASE OF SELLING EXPENSE AND WAGES AND 

SALARIES PER STORE, AND OF AMOUNT OF WAGES AND SALARIES PER 

$100 OF SELLING EXPENSE, FOR 154 IDENTICAL 

STORES, 1919, 1918, AND 1914 





Averaga Amount of Selling Expense per Store 


Average Ajno'int of Wages and Salorlea 
par Store 


Average Anount of nagea and Salaries 
per $100 of Selling Czpenae 




Amount 


Per Cent. Increase over 1914 


Amoijnt 


Per Cent. Increase over 1914 


Amount 


Per Cent. Increase over 1914 




1 Graphic 
Actual 1 

20 40 60 80 100 12C 


{ Graph! a 
Actual 1 

20 40 60 80 100 120 


1 Graphic 
Aatual 1 

20 40 60 80 100 120 


1919 
1918 
1914 


$14,169 
10,452 
8,079 


loe.o 

SI. 9 




t9,464 
7,040 
4,504 


110. 1 
56.5 




$66.90 
67. J5 
65.47 


^.0 
2.9 


1 


— ^ 





188 



1919, while per $100 of selling ex- 
pense they increased between 1914 
and 1918 and decreased between 1918 
and 1919. Second, based upon a 
three-year experience of 154 stores, it 
cost in wages and salaries, on an 
average, $7.22 to sell $100 worth of 
goods. Third, the part of total sell- 
ing expense, properly chargeable to 
wages and salaries, constitutes, on the 
average, for the years in question, 
$66.69, or approximately two-thirds 
of the total. (Table 123.) 

B. — Yearly Amounts of Wages and 
Salaries per $100 of Total Net 
Sales and per $100 of Selling Ex- 
pense for Stores in 1919, 1918, 
and 1914, Classified hy Size. 

When the 154 stores are classified 
by size and the amounts of wages and 
salaries per $100 of total net sales are 
computed for each year, as in Table 
122, it is found that decreases in 1918 
and 1919, compared with 1914, char- 
acterize each group, with but a single 
exception. The average amount for 
all of the stores is $7.22. For those 
with sales under $40,000 it is $5.91; 
for those with sales of $40,000 to 
$80,000, $6.51; for those with sales 
of $80,000 to $180,000, $7.26 ; and for 
those with sales of $180,000 and over, 
$7.84. Similar differences for stores 
of different size hold in each of the 
years. 

Table 123 shows for each group of 
stores, classified by size, the amounts 
of wages and salaries per $100 of 
selling expense in each of the years. 
In every group, the amount in 1918 
was higher than in 1914. In the 



smallest and in the largest stores the 
amounts were less in 1919 than in 
1918. In the other two groups, how- 
ever, the reverse condition obtains. 
In all the groups but one, the 
amounts were higher in 1919 than in 
1914. 

As the stores increase in size, the 
amounts of wages and salaries per 
$100 of selling expense over the whole 
range decrease. The average for the 
three-year period for all the stores is 
$66.69. For the three years for the 
small stores it is $69.56 and for the 
others in order of size, as familiarly 
grouped, $69.67, $66.61, and $65.06. 
From year to year in the groups clas- 
sified by size, the amounts closely cor- 
respond to the total; the largest 
amount being 8.0 per cent, in excess 
of the average and the smallest 8.9 
per cent, less than the average. 

C. — Yearly Amounts of Wages and 
Salaries per $100 of Total Net 
Sales and per $100 of Selling 
Expense, for Stores in 1919, 
1918, and 1914, Classified by Size 
of City in Which Located* 

It is of interest to compare the re- 
lation of wages and salaries to sales 
and to selling expenses from year to 
year for the 154 stores under consid- 
eration when they are classified by the 
size of the city in which they are 
located. This is done in Tables 124 
to 127, inclusive. 

The 115 stores located in the small 
cities increased their sales between 
1914 and 1918 by 49.4 per cent., and 
between 1914 and 1919 by 109.4 per 

* Population figures are for 1920. 



189 



TABLE 122 

TOT.VL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER 

$100 OP TOTAL NET SALES, FOR 154 IDENTICAL STORES CLASSIFIED 

BY SIZE, 1919, 1918, AND 1914 





Years 


number 

of 
Store- 
yeara 


Total 
Met Sales 


Total Wages 
& Salaries 


T/agea and Salaries per $100 
of Total Net Sales 


ClaBSlfled 

Total 
Bet Sales 
(In OOO'b) 


Aiaoiait 


Per Cent. 


Graphic Actual 
D 20 40 60 80 100 120 




Total 
(Average ) 


462 


344,855,499 


$3,235,181 


$7.22 




100.0 






Total 
(Average ) 


1919 
1918 
1914 


154 
154 

154 


20,892,764 

14,714,515 

9,?28,220 


1,457,504 

1,084,125 

693,552 


6.98 
7.37 
7.52 


96.7 
102.1 
104.2 














Total 
(Average) 


129 


5,590,553 


212,119 


5.91 


i 


61.9 


Under ^0 


1919 
1918 
1914 


14 

42 
73 


428,714 
1,256,795 
1,905,044 


19,303 

71,393 

121,423 


4.50 
5.68 
6.37 


62.3 
78.7 
88.2 








1 




Total 
(Average) 


172 


9,775,007 


636,559 


6.51 


90.2 




i 


$40 to |eo 


1919 
1918 
1914 


57 
63 
52 


3,222,468 
3,662,794 
2,889,745 


177,277 
240,074 
219,003 


5.50 
6.55 
7.58 


76.2 

90.7 

105.0 


: 




1 




1 




Total 
(Average ) 


117 


13,695,639 


993, 697 


7.26 


100.6 




j 


180 to ^180 


1919 
1918 
1914 


58 
35 
24 


6,866,815 
4,090,203 
2,738,621 


492,942 
291,057 
209.698 


7.18 
7.12 
7.66 


99.4 

98,6 

106.1 


; 












Total 
(Average) 


44 


17,774,300 


1,393,006 


7.84 


108.6 








1919 
1918 
1914 


25 

14 
5 


10,374,767 
5,704,725 
1,694,810 


767,982 
481,601 
143,423 


7.40 
8.44 
8.46 


102.5 
116.9 
117.2 


1180 & over 










: 



Average |7.22 



cent. The corresponding increases in 
wages and salaries in both years when 
compared with 1914 were 43.2 and 
88.6 per cent, respectively. That is, 
the increases in wages and salaries 
were less than were those in sales. 



Accordingly, when the amounts of 
wages and salaries are expressed in 
terms of sales they decreased 4.2 per 
cent, between 1914 and 1918, and 
10.0 per cent, between 1914 and 1919. 
The 39 stores located in the larger 



190 



cities increased their sales between 
1914 and 1918 by 70.3 per cent, and 
between 1918 and 1919 by 144.6 per 
cent. The wages and salaries in these 
same stores increased between 1914 
and 1918 by 68,9 per cent., and be- 



tween 1914 and 1919 by 130.8 per 
cent. That is, the percentage increases 
are less in wages and salaries than in 
sales for both 1918 and 1919 as com- 
pared with 1914. If the amounts of 
wages and salaries are expressed in 



TABLE 123 

TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OP WAGES AND SALARIES 

PER $100 OF SELLING EXPENSE, FOR 154 IDENTICAL STORES 

CLASSIFIED BY SIZE, 1919, 1918, AND 1914 



Classified 

Total 
Net Sales 


Years 


Ntimber 

of 
Strore- 
yeara 


Total 
Selling 
Expense 


Total 
V/ages & 
Salaries 


Wages and Salaries per $100 
of Selling Expense 


Arao-ont 


Per Cent. 


(m 000' s) 


Graphic . ^ , 

Actual 

20 40 60 80 100 120 




Total 
(Average) 


462 


$4,851,112 


$3,235,181 


$66.69 




100.0 






Total 


1919 
1918 
1914 


154 
154 
154 


2,182,027 
1,609,671 
1,059,414 


1,457,504 
1,084,125 

693,552 


66.80 
67.35 
65.47 


no .2 

101.0 
98.2 


(Averaee) 






; 




1 




Total 
(Average ) 


129 


304,954 


212,119 


69.56 


104.3 






Oader ^0 


1919 
1918 
1914 


14 
42 
73 


29,018 
101, 621 
174,315 


19,303 

71,393 

121,423 


66.52 
70.25 
69.66 


99.7 
105.3 
104.5 






1 




1 




Total 
(Average) 


172 


913,357 


636,359 


69.67 


104.5 






$40 to $80 


1919 
1918 
1914 


57 
63 
52 


246, 207 
345,293 
321,857 


177,277 
240,074 
219,008 


72.00 
69.53 
68.05 




108.0 
104.3 
102.0 






1 




1 




Total 
(Average ) 


117 


1,491,801 


993,697 


66.61 


99.9 




t 


$eo to $180 


1919 
1918 
1914 


58 
35 
24 


719,436 
445,138 
327,227 


492,942 
291,057 
209,698 


68.52 
65.39 
64.08 


102.7 
98.1 
96.1 






! 




i 




Total 
(Average ) 


44 


2,141,000 


1,393,006 


65.05 


97.6 




i 


$180 & over' 


1919 
1913 
1914 


25 

14 

5 


1,187,366 
717,619 
236,015 


767,932 
481, 601 
143,423 


64.58 
67.11 
60.77 


97.0 

100.6 

91.1 













Average $66.69 



191 



terms of sales, they decreased between 
1914 and 1918 by 0.8 per cent., and 
between 1914 and 1919 by 5.7 per 
cent. 

The wages and salaries in terms of 
sales for the stores in the small, and 
for those in the large cities decreased 
in each of the years 1918 and 1919 as 
compared with 1914. The decrease 
was smaller, however, for the stores 
in the large, than for those in the 
small cities, notwithstanding the fact 
that the percentage increases in sales 
for the stores in the large cities for 
each of the years 1918 and 1919, as 
compared with 1914, exceeded those 
for the stores in the small cities by 
20.9 and 35.2 per cent., respectively. 
The compensating feature is the rela- 
tively smaller increase in wages and 
salaries in the stores in the small 
cities. The net result is as stated ; the 
stores in the small cities decreased 
their wages and salaries in terms of 



sales more than those in the large 
cities. 

A comparison similar to that in 
Table 124 is presented in Table 125. 
The 115 stores in the small cities in- 
creased their selling expense in 1918 
over 1914 by 40.8 per cent., and in 
1919 over 1914 by 85.4 per cent. The 
corresponding percentage increases 
for wages and salaries were, respec- 
tively, 43.2 and 88.6. When the 
amounts of wages and salaries attrib- 
utable to selling are expressed in 
terms of selling expense, they are 
found to have increased between 1914 
and 1918, and between 1914 and 1919 
by 1.7 per cent. 

The 39 stores in the large cities in- 
creased their selling expense betw'een 
1914 and 1918 by 61.3 per cent., and 
between 1914 and 1919 by 123.2 per 
cent. Simultaneously, they increased 
their wages and salaries in 1918 over 
1914 by 68.9 per cent., and in 1919 



TABLE 124 

RELATION OP WASES AND SALARIES TO TOTAL NET SALES, FOR 154 IDENTICAL STORES 
CLASSIFIED BY SIZE OF CITY, 1919, 1918, AND 1914 



Slza 

of 

City 

(in OOO's) 


Years 


IKmbor 

of 
Stores 


Bet Balsa 


Bages and Salaries 


Total 


Average Amount 
per Store 


Total 


Average Amount 
per Store 


Por $100 of 
Total Net Sales 


Amount 


Per Cent. 
Increase 
over 1914 


Amount 


Per Cent. 
Increase 
over 1914 


Amount 


Per Cent. 
Decrease 
from 1914 


Total 
(Avcrago) 


1919 
19ia 

1914 


154 
154 

154 


$20,092,764 
14,714,515 
9,228,220 


$135, 667 
95,549 
59,924 


126.4 
59.5 


$1,457,504 

1,084,125 

693,552 


$9,464 
7,040 
4,504 


UO.l 
56.3 


$6.98 
7.37 
7.52 


7.2 
2.0 


UniJor 
40 


1919 
1918 

1914 


115 
115 
115 


10,005,585 
7,156,283 
4,777,138 


87,005 
62,055 
41,540 


109.4 
49.4 


640,451 
486,175 
339,596 


5,569 
4,228 
2,953 


88.6 
43.2 


6.40 
6.81 
7.11 


10.0 
4.2 


40 &nd 
o»or 


1919 
1918 
1914 


59 
39 
59 


10,887,179 
7,578,232 

4,451,082 


279,158 
194,314 
114,130 


144.6 
70.5 


817,053 
597,949 

355,956 


20,950 
15,332 

9,076 


150,8 
68.9 


7.50 
7.89 
7.95 


5.7 

o.e 



192 



over 1914 by 130.8 per cent. That is, 
wages and salaries in both years in- 
creased more rapidly than did selling 
expense. The consequence is that 
when amounts of wages and salaries 
are expressed per $100 of selling 
expense, they increased between 1914 
and 1918 by 4.7 per cent., and be- 
tween 1918 and 1919 by 3.4 per cent. 

As is shown in Table 124, the stores 
in the small cities were at an advan- 
tage over those in the large cities in 
the amounts of wages and salaries 
paid when they are expressed in terms 
of total net sales. An inverse condi- 
tion is found, as shown in Table 125, 
when the amounts of wages and sal- 
aries are expressed in terms of selling 
expense. 

The same 154 stores are classified 
by size of city in which they are 
located and by years in Tables 126 
and 127. Table 126 shows the amounts 



of wages and salaries per $100 of total 
net sales for stores in each city-group 
in each of the years. For the 115 
stores in the small cities, the amounts 
decreased between 1914 and 1918, and 
1918 and 1919. Similarly, the amounts 
for the 39 stores in the large cities 
decreased from year to year. The 
average amount of wages and salaries 
per $100 of total net sales for the 345 
store-years for stores located in small 
cities is $6.69, or 92.7 per cent, of the 
average for all stores ; for the 117 
store-years for stores in the large 
cities it is $7.72, or 106.9 per cent, of 
the average. Corresponding differ- 
ences between the stores in the small 
and in the large cities are found for 
each year. 

In Table 127 the stores are classified 
as in Table 126, but the amounts of 
wages and salaries are expressed per 
$100 of selling expense. The average 



TABLE 125 

RELATION OF WAGES AND SALARIES TO SELLING EXPENSE FOR 154 IDENTICAL STORES 
CLASSIFIED BY SIZE OF CITY, 1919, 1918, AND 1914 



size 
of 

(In OOO'd) 






Selling Expense 


iVages and Salaries 


Yearo 


Number 

of 
Stores 


Total 


Average Amount per 
Store 


Total 


Average Ano'.mt per 
Store 


Per C 

Selling 


100 of 

Expense 


AmoTjnt 


Per Cent, 
Increase 


Amount 


Per Cent. 
Increase 


Amount 


Per Cent. 
Increase 












over 1914 






over 1914 




over 1914 




1919 


154 


J2, 189,027 


tl4,ie9 


106.0 


Si, 457, 504 


59,464 


110.1 


$66.80 


2.0 


Total 
(Average) 


1918 


154 


1,609,671 


10,452 


51.9 


1,084,125 


7,040 


56.3 


67.35 


2.9 




1914 


154 


1,059,414 


6,879 




693, 552 


4,504 




65.47 






1919 


115 


896,863 


7,799 


85.4 


640,451 


5,569 


88.6 


71.41 


1.7 


Under 
40 


1913 


lis 


680,787 


5,920 


40.8 


486,176 


4,228 


43.2 


71.41 


1.7 




1914 


115 


463,712 


4,206 




339,596 


2,953 




70.21 






1919 


39 


1,265,164 


32,953 


123.2 


817,053 


20, 950 


130.8 


63.58 


3.4 


40 and 
over 


1918 


39 


928,884 


23,818 


61.3 


597,949 


15,332 


68.9 


64.37 


4.7 




1914 


39 


575,702 


14,762 




353,956 


9,076 




61.48 





193 



amount for the 345 store-years, for 
the stores in the small cities, is $71.13, 
for the 117 store-years, for the stores 
located in the large cities, it is $63.41. 
That is, the amount for the stores in 
the small cities is 106.7 per cent., and 
for those in the large cities, 95.1 per 
cent, of the average for all stores. 
Similar differences for the stores in 
the different cities occur in each of 
the different years. In 1919, for in- 
stance, the average amount for the 
115 stores in the small cities was 
$71.41, and for the 39 stores in the 
large cities, $63.58. 



From Tables 124 to 127, inclusive, 
it may be concluded first, that total 
net sales and wages and salaries for 
the stores when classified by location 
increased between 1914 and 1918 and 
between 1914 and 1919. Second, the 
amounts of wages and salaries per 
$100 of total net sales decreased be- 
tween 1914 and 1918, and 1914 and 
1919, the decrease being noticeably 
larger for the stores in the small than 
for those in the large cities. Third, 
amounts of selling expense and of 
wages and salaries increased between 
1914 and 1918, and 1914 and 1919 for 



TABLE 126 

TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER 

$100 OF TOTAL NET SALES, FOR 154 IDENTICAL STORES CLASSIFIED 

BY SIZE OF CITY, 1919, 1918, AND 1914 





Years 


Number 

of 
Store- 
years 


Total 
Net Sales 


Total Wages 
& Salaries 


Wages and Salaries per $100 of 
Total Hot Sales 


Size 
of 


Amoiint 


Per Cent. 


City 
(In OOO'b) 


Graphic Actual 
3 20 40 60 80 100 120 




Total 
(Average) 


462 


§44,835,499 


$3,235,181 


|7.22 




100.0 




j 




1919 
1918 
1914 


154 
154 
154 


20,892,764 

14,714,515 

9,228,220 


1,457,504 

1,084,125 

693,552 


6.98 
7.37 
7.52 


96.7 
102.1 
104.2 


(Average) 










1 

i 




Total 
(Average) 


345 


21,919,006 


1,466,223 


6.69 


92.7 




1 




1919 
1818 
1914 


115 
115 
115 


10,005,585 
7,136,283 
4,777,138 


340,451 
486,176 
339,596 


6.40 
6.81 
7.11 


88.6 
94.3 


40 






; 










Total 
(Average) 


117 


22,916,493 


1,768,958 


7.72 


106.9 








1919 
1918 
1914 


39 
39 
39 


10,887,179 
7,578,232 
4,451,082 


817,053 
597,949 
353,956 


7.50 
7.89 
7.95 


103.9 
109.3 
110.1 


over 













Averaee ^7.22 



194 



TABLE 127 

TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES 

PER $100 OF SELLING EXPENSE, FOR 154 IDENTICAL STORES CLASSIFIED 

BY SIZE OF CITY, 1919, 1918, AND 1914 



Size 

of 

City 


Years 


Number 

of 
Store- 
years 


Total 
Selling 
Expense 


Total 
Wages & 
Salaries 


V/acea and Salaries per §100 
of Selling Expense 


Amoxmt 


Per Cent. 


(In 000' 3) 


Graphic ^^t,^^ 
5 20 40 60 80 100 120 




Total 
(Average ) 


462 


$4,351,112 


53,235,181 


§66.69 




100.0 




1 




1919 
1913 

1314 


154 
154 
154 


2,132,027 
1,609,671 
1,059,414 


1,457,504 

1,084,125 

693,552 


66.30 
67.35 
65.47 


100.2 

101.0 

93.2 


Total 
(Average ) 














Total 
(Average ) 


345 


2,061,362 


1,466,223 


71.13 


106.7 




I 




1919 
1913 
1914 


115 
115 
115 


896,863 
630,787 
483,712 


640,451 
486,176 
339,596 


71.41 
71.41 
70.21 


107.1 
107.1 
105.3 


XTnder 
40 










^^^^ 1 




Total 
(Average) 


117 


2,739,750 


1,768,953 


63.41 


95.1 




; 




1919 
1913 
1914 


39 
39 
39 


1,235,164 
923,384 
575,702 


817,053 
597,949 
333,956 


63.53 
64.37 
61.43 


95.3 
96.5 
92.2 


40 and 


■ 




; 







Averaso 166.69 



the groups of stores when classified by 
location. Fourth, the amounts of 
wages and salaries per $100 of selling 
expense increased for the two groups 
of stores between 1914 and 1918, and 
1914 and 1919, the percentage of in- 
crease being larger for the stores in 
the large than for those in the small 
cities. Fifth, the amounts of wages 
and salaries per $100 of total net sales 
are less in the combined and in the 
individual years for the stores in the 
small, than for those in the large 
cities. Sixth, the amounts of wages 
and salaries per $100 of selling ex- 



pense are less for the combined and 
individual years for the stores in the 
large cities than for those in the small 
cities. 

D. — Yearly Amounts of Wages and 
Salaries per $100 of Total Net 
Sales and per $100 of Selling 
Expense, for Stores Classified by 
Size and by Size of City in Which 
Located* 1919, 1918, and 1914. 

In Tables 128 to 131, inclusive, the 
amounts of wages and salaries per 
$100 of total net sales are shown for 

* Population figures are for 1920. 



195 



the combined and individual years 
for 154 stores classified by location 
and by size. Table 128 refers to the 
combined years and Tables 129 to 
131, respectively, to the years 1919, 
1918, and 1914. 

The average amounts of wages and 
salaries per $100 of total net sales for 
the 462 store-years is $7.22. When 
the stores are classified by size, no ac- 
count being taken of location, the 
amounts increase as the stores in- 
crease in size, the minimum — $5.91 — 



characterizing the stores with smallest, 
and the maximum — $7.84 — character- 
izing those with largest sales. In 1919 
the average was $6.98. For the stores 
with the smallest sales it was $4.50 
and for those with the largest sales, 
$7.40. It is unnecessary to mention 
the actual amounts for 1918 and 1914. 
The details for each of the years are 
contained in the total sections of the 
tables mentioned. 

When the stores are classified by 
location for the combined and indi- 



TABLE 128 

TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER 

$100 OF TOTAL NET SALES, FOR 154 IDENTICAL STORES CLASSIFIED BY 

SIZE OF CITY AND STORE, 1919, 1918, AND 1914 COMBINED 



SI to 


Classified 

Total 
Net bales 
(in 000' a) 


Humbcr 
of 

St ore - 
years 


Total 
Net Sales 


Total V/ages 
k Salaries 


Wages and Salaries per $100 of 
Total Het Sales 


of 

City 

(m 000' a} 


Amount 

< 


Per Cent. 


Graphic Actual 
3 20 40 60 80 100 120 




Total 
(Average ) 


462 


§44,835,499 


$3,255,181 


$7.22 




100.0 








Under $40 
frtO to $80 
|80 to {180 

$180 & over 


129 

172 

117 

41 


3,590,553 

9,775,007 

13,695,639 

17,774,300 


212,119 

636,359 

993,697 

1,393,006 


5.91 
6.51 
7.26 
7.84 


81.9 

90.2 

100.6 

108.6 


Total 
(Average) 
















Total 
(Averape ) 


■^'■b 


21,919,006 


1,466,223 


6.69 


92.7 




! 




Under $40 • 
$40 to $80 
$80 to $180 

$180 & over 


121 

138 

77 

9 


3,317,338 
7,650,532 
8,832,022 
2,119,114 


189,920 
481,917 
628,311 
166,075 


5.73 
6.30 
7.11 
7.84 


79.4 

87.5 
,96.5 
108.6 


under 
40 






; 












Total 
(Average ) 


117 


22,916,493 


1,768,958 


7.72 


106.9 




1 




Under §40 
$40 to 5S0 

$8* to $lCa ■ 
$180 t: over 


8 

34 
40 
35 


273,215 

2,024,475 

4,963,617 

15,665,186 


22,109 

154,442 

365,386 

1,226,931 


8.13 
7.63 
7.36 
7.84 


112.6 

105.7 
101.9 
108.6 


40 and 














^: 



Aver ago $7.22 



196 



vidual years, a somewhat different 
condition is observed. For the com- 
bined years, the average amount of 
wages and salaries per $100 of total 
net sales for the 345 store-years for 
the stores in the small cities is $6.69, 
and for the 117 store-years for the 
stores in the large cities, $7.72. That 
is, the average amount for the stores 
in the small cities is 92.7 per cent., 
and for the stores in the large cities 
it is 106.9 per cent, of the average 
for all stores. The differences in the 



amounts for stores in the two groups 
of cities, treated as a total, are also 
characteristic of the stores differently 
located but of the same size. For the 
combined years, the average amount 
for the smallest stores located in the 
small cities is $5.73. The correspond- 
ing amount for the stores in the large 
cities is $8.13. For the stores with 
annual sales of $40,000 to $80,000 
and located in the small cities, it is 
$6.30; for those of the same size but 
located in the large cities, it is $7.63. 



TABLE 129 

TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER 

$100 OF TOTAL NET SALES, FOR 154 STORES CLASSIFIED 

BY SIZE OF CITY AND STORE, 1919 



Size 


Claaslfled 

Total 
Het Salee 
(In 000*8) 


Nimber 

of 
Stores 


Total 
Het Sales 


Total Tiages 
& Salaries 


Wages ar.u Salaries per OlOO of 
Total liet Sales 


of 

City 

<ln OOO'e) 


Amount 

< 


Fer Cent. 


Graphic 
) 20 40 60 80 100 120 


Actual 




Total 
(Average ) 


154 


§20,892,764 


$1,467,504 


§6.98 




lOC.O 






Total 
(Averaga ) 


Under $40 
$40 to $80 
§80 to $180 

$180 & over 


14 
57 
58 
25 


428, 714 

5,222,468 

6,866,815 

10,374,767 


19, 303 
177,277 
492,942 
767,982 


4.50 
5.50 
7.18 
7.40 

6.40 


64.5 

78.8 

102.9 

106.0 












Total 
(Average ) 


115 


10,005,585 


640,451 


91.7 




! 


Vndor 
40 


Under $40 
$40 to $80 
§80 to $180 

$180 6: over 


14 

51 

44 

6 


428,714 
2,836,747 
5,255,410 
1,484,714 


19,503 
152, 696 
362,170 
106,282 


4.50 
5.38 
6.69 
7.16 


64.5 

77.1 

98.7 

102.6 












Total 
(Averaee ) 


59 


10,887,179 


817,053 


7.50 


107.4 




i 


40 and. 
over 


Under $40 
$40 to $80 
$80 to §180 

$180 U over 


6 
14 
19 


385,721 
1,611,405 

8,890,053 


24,581 
130,772 
661,700 


6.37 
8.12 
7.44 


91.3 

lie. 3 

IOC. 6 















Avoraco v£«98 



197 



TABLE 130 

TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER 

$100 OF TOT.VL NET SALES, FOR 154 STORES CLASSIFIED 

BY SIZE OF CITY AND STORE, 1918 





Classified 

Total 
llet Sales 
(In OOO's) 


number 

of 
Stores 


Total 
Het Sales 


Total T.agea 
& Salaries 


\/ages and Salaries per ClOO of 
Total Ket Sales 


Site 

of 

City 

(Id 000'») 


Amount 

C 


Per Cent. 


Graphic 1 

1 Actual 
) 20 40 60 80 100 120 140 




Total 
(Average) 


154 


$14,714,515 


$1,084,125 


$7.37 




100.0 


Total 
(ATsrage ) 


Under $40 
$40 to $80 
$80 to $180 

$180 k over 


42 
63 
35 
14 


1,256,795 
3,662,794 
4,090,203 
5,704,723 


71,393 
240,074 

291,057 
481,601 


5.63 
6.55 
7.12 
8.44 


1 

! 


77.1 

68.9 

96.6 

114.5 










1 




Total 
(Average) 


115 


7,136,283 


486,176 


6.81 


?2,4 


Dndar 


Onder $40 
$40 to $80 
$80 to $180 

$180 J: over 


41 

49 

22 

3 


1,221,199 

2,776,278 

2,504,412 

634,400 


69, 353 
174,278 
182,752 

59,793 


5.68 
6.28 
7.30 
9.43 




77.1 
85.2 




''^^'^""" ! 






1D6.0 




1 




Total 
(Averare) 


39 


7,578,232 


597,949 


7.89 


107.1 




« 


40 and 


Under $40 
$40 to $80 
$80 to $180 

$180 t over 


1 
14 
13 
U 


35,596 

886,522 

1,585,791 

5,070,323 


2,040 
65,796 
103,305 
421,608. 


5.73 
7.42 
6.83 
8.32 


77.7 

100.7 

92.7 

112.9 















Average $7.37 



As the stores increase in size the dif- 
ferences between the amounts for the 
stores in the two groups of cities 
decrease until for the last group they 
are identical. 

In 1919, as shown in Table 129, the 
stores in the small cities paid $6.40 in 
wages and salaries for every $100 of 
total net sales. Those in the large 
cities paid for the same purpose $7.50. 
Those in the small cities having sales 
of $40,000 to $80,000 paid $5.38, and 
those in the large cities, $6.37. Gen- 
erally speaking, in each group of cities 



the amounts increase as the stores 
increase in size, the differences for the 
stores in the two city-groups in this 
year, as in the combined years, be- 
coming smaller as the stores increase 
in size. It is unnecessary to call at- 
tention to similar tendencies for this 
group of stores in 1918 and 1914. 
The general tendencies are the same 
although the amounts are somewhat 
different. Both may be observed by 
consulting the tables in question. 

Other statements of the amounts 
of wages and salaries attributable to 



198 



selling in stores classified by size and 
by location are found in Tables 132 
to 135, inclusive. In these, the basis 
of comparison is the relation between 
wages and salaries and selling ex- 
pense. 

For all the stores in the combined 
years, $66.69 out of every $100 of 
selling expense was paid in the form 
of compensation to those engaged in 
selling goods. That is, almost exactly 
two thirds of the total selling expense 
went to wages and salaries. Prac- 



tically identical amounts characterize 
the stores in the individual years, the 
difference from the amount for the 
combined years being, for 1919, $0.11, 
for 1918, $0.66, and for 1914, $1.22. 
As the stores increase in size, no ac- 
count being taken of location, there is 
a rough tendency for the amounts to 
decrease. This tendency is more 
marked for the year 1914 than for 
either of the other years, but, in 
general, may be said to characterize 
them all. 



TABLE 131 

TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER 

$100 OF TOTAL NET SALES, FOR 154 STORES CLASSIFIED 

BY SIZE OF CITY AND STORE, 1914 



Size 

of 


ClDtslfled 

Total 
Net i.ale9 
(m OOO's) 


I.'unter 

of 
Stores 


Total 
Net Sales 


Total V/aces 
& Salaries 


(Vages and Salnrles per $100 of 
Total Net Sales 


Amovvnt 


Per Cent. 


(In coo's) 


Graphic Actual 
D 20 40 60 80 100 120 




Total 
(Avcrice) 


154 


$9,228,220 


5693,552 


C7.52 


i 


100.0 








Unfler $40 
$40 to $80 

Seo to Jieo 

§160 & over 


73 

52 

24 

5 


1,905,044 
2,889,745 
2,738,621 

1,694,610 


121,423 
219,008 
209,698 

143,423 


6.3t 
7.58 
7.66 

8.46 


84.7 
100.8 
101.9 
112.5 


Totel 
(Avers CO ) 


i 








; 




1 




Total 
(Average ) 


115 


4,777,138 


339,596 


7.11 


94.6 






Under 
40 


Under $40 
$40 to $80 
$60 to $180 

$180 8c over 


66 

38 
11 


1,667,425 
2,037,513 
1,072,200 


101,264 
154,943 
83,369 


6.07 
7. CO 
7.78 


80.7 
lOlJl 
103.6 






j 




Total 
(Average) 


39 


4,451,082 


353,956 


7.95 


105.7 








Under $40 
$^0 to $80 

$80 to Sieo 

$180 & over 


7 
14 
13 

5 


237,619 

852,232 

1,666,421 

1,694,810 


20,159 

64,065 

126,309 

143,423 


6.48 
7.52 
7.58 
8.46 


112.8 


40 ana 
over 








100. B 
112.5 








^11 1 II 



Average $7.52 



199 



The location of the stores, however, 
seems to influence the amounts of 
wages and salaries when measured in 
terms both of total net sales and of 
total selling expense. It will be re- 
membered from a discussion above, 
pages 49 to 52, that the average 
amount of selling expense per $100 
of total expense, for the stores taken 
as a whole in the small cities, is 
slightly less than for the stores 
treated as a whole in the large cities, 



although the amounts for stores of 
the same size are higher for the stores 
in the small cities. As is shown by 
Tables 132 to 135, inclusive, the aver- 
age amounts of wages and salaries per 
$100 of selling expense, for stores in 
the combined and in the individual 
years, are larger for the stores in the 
small than for those in the large cities. 
This is true not only for the group 
treated as a total, but also, with minor 
exceptions, when stores of the same 



TABLE 132 

TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES 

PER $100 OF SELLING EXPENSE, FOR 154 IDENTICAL STORES CLASSIFIED 

BY SIZE OF CITY AND STORE, 1919, 1918, AND 1914, COMBINED 



Size 

of 
City 


Classified 

Total 
Bet Sales 
(In OOO's) 


Number 

of 
Store- 
years 


Total 
Soiling 
Expense 


Total 
Wage a & 
Salaries 


Wages and Salaries per $100 
of Selling Expense 


Amount 
( 


Per Cent. 


(in OOO's) 


°^^I^^= Actual 
) 20 40 60 80 100 120 




Total 
(Average) 


462 


♦4,851,112 


$3,235,181 


$66.69 




100.0 








Under ^0 
^0 to $00 
$80 to 4130 

tlOO U over 


129 

172 

117 

44 


304,954 

913,357 

1,491,801 

2,141,000 


212,119 

636,359 

993,697 

1,393,006 


69.56 
69.67 
66.61 
65. OG 


104.3 

104.5 

99.9 

97,6 


Total 
(Average ) 
















Total 
(Average) 


345 


2,051,362 


1,466,223 


71.13 


106.7 








Under $40 

$40 to Sao 

580 to $180 
♦l80 & over 


121 

138 

77 

9 


276,723 
670,140 
802,563 
221,936 


189,920 
481,917 
620,311 
166,075 


68.63 
71.91 
70.39 
74.83 


102.9 
107.3 
105.5 
112.2 


Onder 
40 


















Total 
(Average) 


117 


2,789,750 


1,768,958 


63. •il 


95.1 








Under $40 
$40 to too 
$60 to JlBO 

tieo & over 


8 
34 
40 
35 


28,231 

2'»3,217 

599,238 

1,919,064 


22,199 

154,442 

365,386 

1,226,931 


70. G3 
63.50 
60.93 
63.93 


117.9 
95.2 
91.4 
95.9 


40 and 
over 






; 




1 


1 


1 



Average $66.69 



200 



size, but with different location, are 
compared. It may be worth-while to 
point out for the combined years the 
comparative size of these amounts for 
the stores of the same size, but with 
different location. 

For the 121 store-years for the 
stores with sales under $40,000 and 
located in the small cities, the aver- 
age amount is $68.63, while for the 8 
stores of the same size located in the 
large cities it is $78.63. Relatively, 



the two amounts in relation to the 
average stand 2.9 and 17.9 per cent, 
higher, and relative to each other they 
stand in the relation of 100 to 114.6. 
For the remaining groups of stores 
in the two city-groups the average 
amounts for the stores in the small 
cities exceed those for the stores in 
the large cities. The percentages by 
which the averages for the stores in 
the small cities exceed the average for 
all of the stores, treated as a total, 



TABLE 133 

TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OP WAGES AND SALARIES 

PER $100 OF SELLING EXPENSE, FOR 154 STORES CLASSIFIED 

BY SIZE OF CITY AND STORE, 1919 





Classified 

Total 
Bet Sales 
(In 000' a) 


Ktunber 

of 
Stoi^a 


Total 
Selling 
Kxpense 


Total 
Wagaa * 
SalEO-lea 


Vagea and Salaries per $100 of 
Selling Expense 


8it« 

of 

City 

(In 000*a) 


AoBount 


Per Cent. 


Graphic j^otual 
3 20 40 60 80 100 120 




Total 
(Average) 


154 


♦8,188,027 


$1,467,504 


$66.80 




100.0 




i 




Iteder Uo 
^ to |80 
|80 to |180 

#180 * over 


14 
57 
S8 

25 


29,018 

246,207 

719,436 

1,187,366 


19,903 
177,877 
498,942 
767,982 


66.S» 
72.00I 
68.58 
64.68 


99.6 

107.6 

102.6 

96.8 


Total 
(Average ) 


! 




: 




: 








Total 
(Average) 


116 


696,863 


640,451 


71.41 


106.9 








U&der #40 
|40 to t80 
teo to #180 

♦l80 & over 


14 

51 

44 

6 


29,018 
211,678 
509,410 
146,757 


19,303 
152,696 
362, 170 
106,282 


66.52 
72.14 
71.10 
72.42 


99.6 
108.0 
105.4 
108.4 


40 


; 












! 




Total 
(Average ) 


39 


1,285,164 


817,053 

24,581 
150,772 
661,700 


63.58 

71.19 
62.26 
63.59 


95.2 




i 

1 


40 cad 


Under $40 
|40 to $80 
$80 to $180 

llfio & over 


6 
14 
19 


34,529 

210,026 

1,040,609 


106.6 
93.2 
95.2 








III^IH^l^^H ! 




_ I 



Averago #66.60 



201 



TABLE 134 

TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES 

PER $100 OF SELLING EXPENSE, FOR 154 STORES CLASSIFIED 

BY SIZE OF CITY AND STORE, 1918 



g' 


Classified 

Total 
llet Sales 
(In coo's) 


Uirober 

of 
Stores 


Total 
Selling 
Expense 


Total 
VJages U 
Salaries 


Waccs and Salaries per vlOO of Selling Expense 


size 
of 


Amount 

( 


Per Cent. 


City 
(In coo'e) 


Graphic 
5 20 40 60 80 100 120 liO leC 


Actual 




Total 
(Average) 


154 


$1,609,671 


$1,084,125 


$67.35 




100.0 








Under $40 
$40 to $80 
$60 to $180 

$180 & over 


42 

63 
35 
14 


101,621 
345,293 
445,138 
717,619 


71,393 
240,074 
291,057 
481,601 


70.25 
69.55 
65.59 
67.11 


101.3 

103.2 

97.1 

99.6 


Total 
(Avsrago) 
















Total 
(Average) ' 


115 


680,787 


486,176 


71.41 


106.0 








Under $40 
$40 to $60 
$60 to $180 

$180 & over 


41 

49 

22 

3 


99,513 
244,768 
261,307 

75,179 


69,353 
174,278 
182,752 

59,793 


69.69 
71.20 

69.94 
79.53 


105.5 
105.7 
103.8 
118.1 


Unier 
40 


: 














Total 
(Average) 


39 


928,884 


■ 597,949 


64.37 


95.6 




i 




Under $40 
$40 to $80 
$80 to $180 

|180 t over 


1 
14 
13 

U 


2,108 
100,505 
183,831 
642,440 


2,040 

65,796 
108,305 
421,808 


96.77 
65.47 
56.92 
65.66 


143.7 
97.2 
67.5 
97.5 


40 and 
over 


: 


: 








1 , •■ 



Averace J67.35 



being, respectively, for the different 
size-groups, 7.8, 5.5, and 12.2. The 
corresponding percentages by which 
the averages for the stores in the large 
cities are less than the average for all 
of the stores are 4.8, 8.6, and 4.1. 

Results similar to those just men- 
tioned may be secured by comparing, 
for each of the various years, stores 
of similar size but with different lo- 
cation. This the reader may do by 
consulting Tables 133 to 135, inclu- 
sive. 



From Tables 128 to 135, inclusive, 
it may be concluded as follows : First, 
the amounts of wages and salaries per 
$100 of total net sales increase as the 
stores increase in size, this being true 
for the stores treated as a whole and 
with minor exceptions when treated 
according to location. Second, the 
amounts of wages and salaries per 
$100 of total net sales are generally 
lower for stores in the small than for 
stores in the large cities, both when 
treated as a total and when compared 



202 



TABLE 135 

TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES 

PER $100 OF SELLING EXPENSE, FOR 154 STORES CLASSIFIED 

BY SIZE OF CITY AND STORE, 1914 





Classified 

Total 
Net Sales 
(in OOO'a) 


lluwber 

of 
stores 


Total 
Selling 
Expense 


Total 
Wages & 
Salaries 


!■ 

V/ages and Salaries per 4lOO 
of Selling Expei^se 


of 
City 


Amount 

( 


Per Cent. 


(In OOO's) 


Graphic 
3 20 40 60 80 100 12C 


Actual 




Total 
(Average ) 


154 


$1,059,414 


$693,552 


i.65,47 




100.0 








Under $40 

*4o to tec 

$80 to $180 
5180 k over 


75 
62 

24 
5 


174,315 
321,857 

527,227 
236,015 


121, ''23 

219,008 
209,698 
143, "23 


69.66 
68.05 
64.08 
60.77 


106.4 

103.9 

97.9 

92. S 


Total 
(Average ) 






: 




I 








Total 

(Average) 


115 


483,712 


339,595 


70.21 


107.2 








Under ii^O 
$40 to $80 
$80 to $160 

$180 & over 


66 
38 

11 


148,192 
213,674 
121,846 


101,264 

154,943 

83,589 


68.33 
72.51 
68.44 


104.4 
110.8 
104.5 


Under 
40 














Total 
(Average ) 


39 


575,702 


353,956 


61.^ 


93.9 








Under $40 

$40 to 4eo 

$80 to $180 
$180 Jc over 


7 
X4 
13 

5 


26,123 
108, 183 
205,381 
236,015 


20,159 

64,065 

126,309 

143,423 


77.17 
59.22 
61.50 
60.77 


117.9 
90.5 
93.9 
92. S 


40 and 














1 



Average $55.47 



by size. This condition is generally 
true for the combined and for the 
individual years. Third, the amounts 
of wages and salaries per $100 of 
selling expense for stores in large 
cities decrease as the stores increase 
in size. For those in small cities, the 
reverse condition obtains. Fourth, 



the amounts of wages and salaries per 
$100 of selling expense for the stores 
in the small are higher than for the 
stores in the large cities, both when 
treated as a whole and when com- 
pared by size. This condition is gen- 
erally true for the combined and for 
the individual years. 



203 



E. — Summary. 

(1). "Wages and salaries in terms 
of sales decreased between 
1914 and 1918, and 1918 and 
1919. 

(2). Approximately two thirds of 
selling expense is chargeable 
to the wages and salaries of 
the selling force. 

(3). Wages and salaries in terms 
of total selling expense in- 
creased between 1914 and 
1918, and decreased between 
1918 and 1919. 

(4). The amounts of wages and 
salaries per $100 of total net 
sales increase with the size of 
store for all stores, as well as 
for those located in small and 
large cities. 

(5). The amounts of wages and 
salaries per $100 of selling 
expense for all stores and for 
those in large cities decrease 
as the sales increase. The 
amounts increase with size of 
store in small cities. 

(6). For stores of the same size, 
wages and salaries in terms of 
sales are higher in large than 
in small cities. 

(7). The proportion of selling ex- 
pense chargeable to wages and 
salaries is higher in small 
than in large cities for stores 
of a given size. 



2. — YEARLY AMOUNTS OF WAGES AND 
SALARIES IN RELATION TO THE 
AMOUNTS OF STOCK CARRIED, FOR 
STORES CLASSIFIED BY YEARS AND 
BY SIZE. 

The discussion of wages and salaries 
for stores classified by the amounts of 
inventory carried per $100 of total 
net sales follows closely the corre- 
sponding section, pages 53 to 85, 
which relates to yearly amounts of 
total selling expense for stores classi- 
fied in the same manner. The 
amounts are measured in terms of 
sales, of selling expense, and of 
other appropriate units. The methods 
which are used to secure the different 
ratios are explained on page 4, and 
do not need to be repeated here. 

A. — Yearly Amounts of Wages aind 
Salaries per $100 of Total Net 
Sales and per $100 of Selling 
Expense, 1919, 1918, and 1914. 

The decreases from year to year in 
the amounts of wages and salaries 
per $100 of total net sales for 154 
stores are shown in actual amounts 
and in graphic form in Table 119. 
Similar decreases also hold from year 
to year for the 149 stores which are 
discussed in this section. In Table 
136 the amounts are shown to be 
$7.60 in 1914, $7.42 in 1918, and 
$7.04 in 1919. Moreover, when the 
stores are classified in each year by 
the amounts of inventory per $100 
of total net sales, wages and salaries 
decrease generally from year to year 
for stores having inventories of the 
same size. There are some exceptions 



204 



to this rule, primarily due to the 
small number of stores included, but 
they cannot always be explained by 
this fact. It should be kept in mind 
that inventories in terms of sales were 
relatively lower in 1919 than in 
1914 or in 1918. Consequently, the 
amounts of wages and salaries per 
$100 of total net sales for stores in 
the different years may be more ac- 
curately compared by considering 
stores with inventories of the same 
size in the different years than by 
grouping the stores as totals. When 
the totals are compared, differences 
may be ascribed to changes in wages 
and salaries paid, to the increases or 
decreases in the sales, or to the 
changes in the inventories in relation 
to sales. 

For each year the amounts of 
wages and salaries per $100 of total 
net sales decrease as the inventories 
per $100 of total net sales increase. 
The amount for stores having inven- 
tories of less than $20 per $100 of 
total net sales is exceptionally low. 
In the discussion of selling expense 
per $100 of total net sales for the 
stores similarly classified, it will be 
recalled that the same condition held. 
It has been pointed out that the de- 
creases in the amounts, stated in terms 
of sales, can be explained, in part at 
least, by the fact that the large stores 
have relatively high selling expenses 
per $100 of total net sales and 
relatively low inventories, similarly 
measured. The same observation ap- 
plies to the detail of Table 136. 
Inasmuch as wages and salaries con- 
stitute on the average 66 per cent. 



of total selling expense, it is to be 
expected that the nature of the change 
in the amounts of selling expense 
will be reflected in the amounts of 
wages and salaries. 

The part of Table 136 which shows 
the amounts of wages and salaries per 
$100 of total net sales for each amount 
sold per $1 of inventory is more sig- 
nificant.* By the use of this unit the 
varying sizes of the stores are elim- 
inated and the amounts of wages and 
salaries per $100 of total net sales for 
stores of different-sized inventories 
made comparable. It will be seen by 
consulting the table that the amounts 
expressed in this more detailed form 
increase in each of the years as the 
inventories in relation to sales in- 
crease. How generally this condition 
obtains, and the regularity with which 
the increases occur, are shown graph- 
ically and in amounts in Table 136. 
It is unnecessary in view of the dis- 
cussion on page 55 to comment fur- 
ther upon this tendency. Attention, 
however, should again be called to the 
fact that wages and salaries constitute 
approximately 66 per cent, of the 
total selling expense and that the in- 
fluences which determine the amounts 
of wages and salaries are likely also 
to determine the amounts of selling 
expense. 

In order to supplement Table 136, 
Table 137 has been prepared. This 
table shows for each of the years the 
average amounts of inventory per 
$100 of total net sales for stores 
classified by amounts of wages and 

* The method by which this unit ia com- 
puted is explained on page 4, item 17. 



205 



salaries paid per $100 of total net 
sales. The average inventory per 
$100 of total net sales decreased be- 
tween 1914 and 1918, and between 
1918 and 1919, the reduction being 
particularly noticeable between 1918 
and 1919. Within each year, more- 
over, the inventories decrease as the 
amounts of wages and salaries per 
$100 of total net sales increase. That 
is, there is an inverse relationship 
between inventories and wages and 
salaries when both are expressed in 
sales. A similar condition was shown 
in Table 20 for the stores when classi- 



fied in each of the years according to 
the amounts of selling expense per 
$100 of total net sales. 

In Table 138 the same 149 stores 
are classified in each of the years 
according to the amounts of inven- 
tory per $100 of total net sales, and 
for each group of stores the average 
amount of wages and salaries per 
$100 of selling expense has been 
computed. For the combined years, 
$66.88 out of every $100 of selling 
expense was paid to salesmen in wages 
and salaries. In 1914 the amount was 
$65.73, in 1918, $67.51, and in 1919, 



TABLE 136 

AMOUNT OP WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER AMOUNT SOLD 

PER $1 OF INVENTORY, FOR 149 IDENTICAL STORES CLASSIFIED BY AMOUNT 

OF INVENTORY PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 





*Dount cr 
Ijiventrry 
ptr tlOL of 

Totol 

Hot Balea 


Hunber 

or 
store- 
;ear« 


Wagee and Salaries per $100 of 
Total Net Salea 


Vages and Salaries per $100 of Total Net Salea 
per Amount Sold per $1 of Inventory 




tamat 


fer Cent. 


Amount 


Per Cent. 




<^^^' 1 iotual 
20 40 60 80 100 120 


"^•P"^" 1 Actual 
20 40 60 80 100 120 140 160 180 




Total 
(Average) 


447 


$7.28 




100.0 


$S.74 




100.0 








Total 
Uverags) 


Under $20 
$20 to $40 
$40 to $60 
t60 & over 


14 

168 
177 
68 


6.24 
7.81 
6.70 
6.«S 


72.0 
107.3 
92.0 
88.6 


0.92 
2.S4 
3.55 

4.52 


ss.« 

85.4 

122.5 
165.0 




















Total 
(Average) 


149 


7.04 


96.7 


2. SI 


84.9 






— 


1919 


ttafler $20 
t20 to $40 
t40 to $60 
l60 k over 


7 
63 
51 

e 


S.57 
7.40 
6.S6 
S.14 




7S.8 
101.6 
87.4 
70.6 


0.94 
2.2S 

s.ia 

5.60 


34.3 

81.0 

U6.1 
131.4 




















Tct»l 
(Average) 


149 


7,42 


101.9 


5.00 


109.5 




i— i— 


i- 


19IB 


Kaicr $20 
•20 to $40 
•40 to $60 
•£0 t orer 


3 
46 
60 
40 


3.90 
6.57 
6.27 
6.45 


SS.6 
U7.7 
86.1 
88.6 


0.68 
2.67 
3.14 
4.62 


24.8 
9S.S 
114.6 
165.0 




















Total 
(Arer.ee) 


149 


7.60 


104.4 


3.30 


\20.4 




Onaer $eO 
$20 to $40 
$40 to t«0 
$eo k over 


4 
S9 
66 
40 


6.95 
7.89 
7.65 
6.86 




9S.5 
108.4 
106.1 

94.2 


1,22 
2.57 
5.8S 
4.80 


^ 


44 .S 

66.5 
139.6 
175.8 


191* 




















: 



ATttra«6 |7.£8 



Avorago #e.74 



206 



$66.98. That is, the almounts in- 
creased between 1914 and 1918 and 
decreased between 1918 and 1919. A 
similar condition was observed in 
Table 121 for 154 stores for the same 
years. 

When the 149 stores are classified 
for each of the years by the amounts 
of inventory per $100 of total net 
sales, as in Table 138, there is a gen- 
eral tendency, in the combined years, 
for the amounts of wages and salaries 
per $100 of selling expense to in- 



crease as the inventories per $100 of 
total net sales increase. Those stores 
which had inventories less than $20 
per $100 of total net sales had wages 
and salaries per $100 of selling ex- 
pense of $62,42, while those which 
had inventories of $60 and over per 
$100 of total net sales had wages and 
salaries of $68.84 out of every $100 
of selling expense. "When each of the 
years is considered separately, how- 
ever, the tendency for the amounts to 
increase or to decrease with the in- 



TABLE 137 

TOTAL NET SALES, INVENTORY, AND AMOUNT OF INVENTORY PER $100 OF TOTAL NET 

SALES, FOR 149 IDENTICAL STORES CLASSIFIED BY AMOUNT OF WAGES AND 

SALARIES PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 





Amount of 
Wagos & 
Salaries 
per $100 of 
Total 
Net Sal^3 


number 

of 
Stora- 
yaara 


Total 
llet Sales 


Total 
Inventory 


Inventory per $100 of Total Net Sales 


Years 


Amount 

< 


Per Cent. 




°'^P^^'= Actual 
> 20 40 60 80 100 120 l40 




Total 
(Average) 


447 


$43,599,972 


$16,369,406 


137.54 




100.0 






Total 


Under $A 
e4 to J8 
^ 8; over 


95 
227 
125 


5,689,635 
24,298,967 

13,611,350 


2,268,589 
9,067,776 

5,033,041 


39.87 
37.31 

36.98 


106.2 
99.4 
98.5 


(Average ) 






1 




1 




Total 
(Average ) 


149 


20,303,641 


6,567,056 


32.84 


87.5 




i 


1919 


Dhder $4 
54 to $8 
$8 & over 


42 
71 
35 


3,504,985 
11,248,575 

5,550,081 


1,237,010 
5,679,392 
1,750,654 


35.29 
32.71 

31.54 


94.0 
87.1 
64.0 


! 












Total 
(Average ) 


149 


14, 322, 667 


5,804,340 


40.53 




108.0 






1908 


Unaer $4 
t4 to J8 
53 i over 


34 
70 

45 


1,594,006 
8,149,100 
4,579,553 


736,259 
3,311,650 
1,756,431 


46.19 
40.54 
38.35 


123.0 
108.3 
102.2 














Total 
(Average ) 


149 


8,973,664 


3,898,010 


43.44 


115.7 






1914 


Under ^ 
^ to $8 
Sa & over 


19 
86 
44 


590,544 
4,901,304 
3,401,716 


295, 320 
2,076,734 
1,525,956 


50.00 
42.37 
43.83 




133.2 
112.9 
116.8 













Average 337.54 



207 



TABLE 138 

TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNTS OF WAGES AND 

SALu^RIES PER $100 OF SELLING EXPENSE, FOR 149 IDENTICAL STORES 

CLASSIFIED BY AMOUNT OF INVENTORY PER $100 OF 

TOT.VL NET SALES, 1919, 1918, AND 1914 





Amount of 

Inventory 

per (100 of 

Dotal 
Ket Sales 


Number 

of 
Store- 
years 


Total 
Selling 
Expense 


Total 
Wages k 
Salaries 


Wages and Salaries per (100 of 
Selling Expense 


YsaW 


Aacunt 


Per Cent. 




Graphic Aet,^ 
) 20 40 60 60 100 120 




Total 
(Average) 


447 


(4,745,829 


(5, 174, 021 


(66.83 




100.0 








Uhder (20 
t20 to (40 
$40 to (60 
(60 8: over 


14 
168 
177 

88 


172,900 
3,088,085 
1,128,967 

555,877 


107,920 

2,066,831 

764,274 

244,996 


62.42 
6e.93 
66.81 
68.84 


95.5 

100.1 

99.9 

102.9 


Total 




(Average ) 














Total 
(Average ) 


149 


2,135^072 


1,430,061 


66.98 


100.1 








rnder (20 
(20 to (40 
(40 to (60 
(60 8c over 


7 
83 
51 

8 


105,711 

1,649,518 

545,965 

55,878 


64,927 

1,111,412 

230,646 

23,076 


61.42 
67.38 
6«.67 
68.12 


91.8 
100.7 

99.7 
101.9 


1919 
















Total 
(Average) 


149 


1,573,249 


1,062,031 


67.51 


100.9 








Onder (20 
iZO to (40 
t40 to (60 
(60 & over 


S 

46 
60 
40 


52,117 
937,441 
427,462 
176,229 


20,714 
644,437 
275,422 
121,468 


64.50 
68.74 
64.43 
68.92 


96.4 
102.8 

96.3 
103.1 


1918 
















Total 
(Average) 


149 


1,037,508 


681,929 


66.73 


98.3 




: 




Under (20 
(20 to (40 
(40 to (60 
(60 !t over 


4 
59 
66 
40 


55,072 
501, 126 
555,540 
145,770 


22,279 
510,982 
248,206 
100,462 


63.52 
62.06 
69.81 
68.92 


95.0 

92,8 

104.4 

103.1 


1914 















Average $66.88 



crease in inventories in relation to 
sales is uncertain. It is of interest 
to observe, however, that in the years 
under consideration, the smallest 
amount of wages and salaries per 
$100 of selling expense was less than 
the average by 8.2 per cent., and the 



largest amount greater than the 
average by 4.4 per cent. That is, a 
remarkable degree of uniformity 
characterizes the amounts for all 
groups of stores in the different years. 
Similar uniformity in the amounts 
of wages and salaries per $100 of 



208 



TABLE 139 

TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER 

$100 OF TOTAL NET SALES, FOR 149 IDENTICAL STORES CLASSIFIED BY SIZE 

AND BY AMOUNT OF INVENTORY PER $100 OP TOTAL NET 

SALES, 1919, 1918, AND 1914, COMBINED 





. , 

ibnount of 

Inventory 

per §100 of 

Total 

K«t Sales 


Nxantier 

of 
Stoi*e- 
yoara 


Total 
Net Sales 


Total Wages 
& Calaries 


V/ages and Salaries per JlOO of 
Total Net Sales 


Total 
Net Sales 




For Cent. 


(In OOO'a) 


Amount Graphic Actual 
20 40 00 CO 100 120 




Total 
(Average) 


447 


§43,599,972 


§3,174,021 


37.28 














Under §20 
§20 to §40 
§40 to §60 
§60 4 over 


14 
168 
177 

as 


2,059,425 
26,478,436 
11,263,282 

5,798,829 


107,920 

2,066,831 

754,274 

244,996 


5.24 
7.81 
6.70 
6.45 




Total 
(Averagej 
























Total 
(Average ) 


127 


3,532,911 


208,053 


5.89 






— 




Under $40 


Under §20 
^0 to §40 
$40 to §60 
f 60 k over 


1 
18 
52 
56 


28,933 

560,460 

1,412,525 

I, 530, 993 


720 

53,972 
75,000 
96,361 


2.49 
6.06 
5.31 
6.43 


34.2 
83.2 
72.9 
88.3 
















Total 
(Average ) 


165 


9,560,348 


616, 677 


6.59 


90.5 








tbder §20 
$20 to §40 
$40 to §60 
§60 t over 


6 

52 

82 

^ ■ 86 


402,009 
3,083,049 
4,458,869 
1,416,421 


20,502 
187,969 
509,459 

98,767 


5.10 
6.10 
6.94 
6.97 


70.1 
83.8 
95.3 
95.7 


*4o to iao 


















Total 
(Avarago ) 


112 


13,121,494 


963,555 


7.34 


100.8 








"Under $20 
fiSO to §40 
§40 to 560 
§60 & over 


5 
60 
40 

7 1 


555,107 
7,076,841 
4,638,131 

851,415 


58,199 
563,284 
514,184 

47,868 


6.88 
7.96 
6.77 
5.62 


94.5 

109.3 

93.0 


$80 to §180 




















Total 
(Average) 


43 


17,585,219 


1,385,756 


7.88 


108.2 






§180 »i over 


Under $20 
§20 to §40 
§4a to §60 
§60 & over 


2 

38 
9 


1,073,375 

15,758,086 

753,757 


48,499 

1,281,606 

65,651 


4.52 
8.13 
7.38 


62.1 
111.7 
101.4 











Average J7.2a 



209 



total expense was found to charac- 
terize the stores treated in Volume II * 
of the Bureau's study of Costs, Mer- 
chandising Practices, Advertising and 
Sales in the Eetail Distributian of 
Clothin-g. "Wages and salaries," as 
there used, included all forms of com- 
pensation paid, and "total expense" 
included all operating expenses. In 
Table 138, "wages and salaries" in- 
cludes only the compensation paid to 
those who are involved in selling, and 
"selling expense" is used in the sense 
defined on page 34. What is being 
stressed now is the uniformity in the 
amounts of wages and salaries when 
measured in terms of two separate 
standards. 

From Tables 136 to 138, inclusive, 
it may be concluded: First, that the 
amounts of wages and salaries per 
$100 of total net sales in the years 
1919, 1918, and 1914, combined and 
individually, for stores having inven- 
tories, similarly measured, of $20 and 
over, decrease as the amounts of 
inventory per $100 of total net sales 
increase. Second, the amounts of 
wages and salaries per $100 of total 
net sales decreased from 1914 to 1918, 
and 1918 to 1919. Third, the amounts 
of inventory per $100 of total net 
sales, in the individual and in the 
combined years, decrease as the 
amounts of wages and salaries (in 
terms of sales) increase. Fourth, the 
amounts of inventory per $100 of 
total net sales decreased between 1914 
and 1018, and 1918 and 1919. Fifth, 
the amounts of wages and salaries per 
$100 of selling expense increased be- 

• Pages 157 to 164. 



tween 1914 and 1918, and decreased 
between 1918 and 1919. Sixth, for 
the combined years the amounts of 
wages and salaries per $100 of selling 
expense roughly tend to increase as 
the amounts of inventories increase. 
For the individual years the ten- 
dencies to decrease or to increase are 
uncertain. 

B. — Yearly Amounts of Wages and 
Salaries per $100 of Total Net 
Sales and per $100 of Selling 
Expense, for Stores Classified hy 
Size, 1919, 1918, and 1914. 

In Tables 139 to 142, inclusive, the 
149 stores which are being considered 
are classified for the combined and 
for the individual years by size and 
by the amounts of inventory in rela- 
tion to their sales. For each group 
the average amount of wages and 
salaries paid by stores to their selling 
force has been computed in terms of 
sales. 

In 1919 it cost in wages and salaries 
$7.04 to sell $100 worth of goods. 
For the stores with sales under $40,- 
000, the cost was $4.50 ; for those with 
sales of $40,000 to $80,000 it was 
$5.54; for those with sales of $80,000 
to $180,000 it was $7.25; and for 
those with sales of $180,000 and over 
it was $7.47. That is, the amounts 
increase as the stores increase in size. 
When the stores are classified, as in 
Table 140, by the amounts of in- 
ventory per $100 of total net sales, 
increases, with few exceptions, are 
found to characterize stores of in- 
creasing size, but with similar inven- 
tories in relation to sales. In some of 



210 



TABLE 140 

TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OP WAGES AND SALARIES PER 

$100 OF TOTAL NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY 

AMOUNT OF INVENTORY PER $100 OF TOTAL NET SiVLES, 1919 



CXaaalflod 


Amoxmt of 

Inventory 

per $100 of 

Total 

Nat Sales 


Number 

of 
Stores 


Total 
Net Sales 


Total V7ages 
& Salaries 


V/agoa 


and Salaries per $100 of 
Total Net Salep 


Total 
Net Sales 
(In coo's) 


Amoiint 


Per Cent. 


Graphl a 

Actual 

20 40 60 80 100 120 




Total 
(Average ) 


149 


$20,303,641 


$1,430,061 


$7.04 














nhder $20 
$20 to $40 
$40 to $60 
$60 & over 


7 
85 
SI 

8 


1.208,113 

15,018,367 

3,628,138 

448,963 


64,927 

1,111,112 

230,64(= 

27,076 


5.37 
7.40 
6.36 
5.14 


76.3 
105 J. 


Total 
(Average ) 












73.0 








Total 
(Average ) 

tftider $20 
$20 to $40 
$40 to $60 
$60 3e over 


14 


428,714 


19,303 


4.50 


63.9 


Ohder $40 


2 

8 
4 


68,054 
244,012 
116, 643 


2,640 
10,750 
5,913 


3.38 
4.41 
5.07 


55.1 
62.6 










Total 
(Average) 


55 


3,082,152 


170,682 


5.54 


78.7 






$40 to $80 


Dhaer $20 
tf20 to $40 
$40 to $60 
$60 5t over 


2 
22 
28 

3 


150,276 
1,237,723 
1,472,999 

171,154 


5,875 
65,760 
91,847 

7,200 


3.91 
5.11 
6.24 
4.21 


55.5 
72.6 
88.6 
59.8 








Total 
(Average) 


56 


6,607,039 


479,344 


7.25 


103.0 




tTnder $20 
$20 to $40 
$40 to $60 
$60 2c over 


4 
37 
14 

1 


384,466 
4,382,153 
1, 679, 299 

161,166 


26,569 

326, 696 

116,116 

9,963 


6.91 
7.46 
6.91 
6.18 




98.2 

105.0 
98.2 
87.8 


$80 to $180 










'; 








Total 
(Average ) 


24 


10,185,686 


760,732 


7.47 


105.1 






$180 & over 


Under $20 
$20 to $40 
$40 to $60 
$50 & over 


1 
23 

1 


673, 376 

9,280,432 

231,378 


32, 483 

716,316 

11,933 


4.82 


68.5 

109.7 

73.2 




5.15 
















Average $7.04 





211 



the groups the number of stores is so 
small, when they are classified in this 
form, as to make direction of change 
uncertain. The irregularities in the 
amounts, however, are for the most 
part removed when the three years 



are combined as in Table 139. More- 
over, the tendency for the amounts 
to increase is more regular in 1919 
when a larger group of stores is used 
as in Table 144. 

The amounts of wages and salaries 



TABLE 141 

TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER 

$100 OF TOTAL NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY 

AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1918 





Anount of 

Inventory 

per $100 of 

Total 

Hot Sales 


number 

of 
Stores 


Total 
net Sales 


Total Wages 
& Salaries 


Wages and Salaries per $100 of Total Net Sales 


Total 
Net Sales 
(In 000' e) 


Amount 

C 


Per Cent; 


'^•''P"' 1 Actual 
20 40 60 60 100 120 140 




Total 
(Average) 

Under |20 
$20 to t40 
t40 to $60 
|60 t over 


149 


$14,322,667 


$1,062,031 


$7.42 




100.0 




i 


Total 
(Average ) 


5 
46 
60 
40 


530,649 
7,517,748 
4,389,893 
1,884,377 


20,714 
644, 437 
275,422 
121,458 


3.90 
8.57 
6.28 
6.45 


52.6 

115.5 
84.6 
86.9 














Total 
(Average ) 


42 


1,256,795 


71,393 


5.68 


' 76.5 




1 


Ttader $40 


Older $20 
|e0 to $40 
$40 to $60 
$60 Jt over 


6 

13 
23 


209,528 
581,fc73 
665,594 


9,878 
17,855 
43,660 


4.71 

4.ee 

6.56 


63.5 
63.1 

88.4 








Total 
(Average ) 


60 


3,501,019 


231,207 


6.60 


89.1 




I 


#40 to tso 


Under $20 
$20 to $40 
$40 to $60 
$60 It over 


2 
15 
29 
14 


130,649 

901,852 

1,632,061 

836, 457 


4,698 
67,991 
98^40 
60,578 


3.60 
7.54 
6.01 
7.22 


. 48.5 
101.6 
81.0 
97.3 




1 




J 




i 




Total 
(Average ) 


53 


3,860,130 


277,830 


7.20 






i 




tec to tl80 


fodar $20 
$20 to $40 
$40 to $60 
$60 & over 


14 

16 

3 


1,623,524 

1,854,280 

582, 326 


144,701 

US, 709 

17,420 


8.91 
6.24 
4.56 


120.1 




t 




i 
! 


61.5 




Total 
(Average) 


14 


6,704,723 


481,601 


8.44 






^.Mi 




flBO k over 


Under $20 
$20 to $40 
$40 to $60 
$60 i over 


1 
U 
2 


400,000 

4,782,844 

621,879 


16,016 
421,867 
49,7ia 


4.0O 
6.82 
e.38 


53.9 
118.9 
112.9 








i 



Averago |7.48 



212 



TABLE 142 

TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER 

$100 OF TOTAL NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY 

AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1914 



Classified 

Total 
Het Sales 
(In 000' 8) 


Amount of 

Inventory 

per 5 100 of 

Total 

Net Sales 


Number 

of 
Stores 


Total 
Net Sales 


Total Wages 
& Salaries 


Wages and Salaries per $100 of 
Total Het Sales 


Amoxtnt 


Per Cent. 


Graphic . ^ . 
^ Actual 

3 20 40 60 80 100 120 




Total 
(Average ) 


149 


$8,973,664 


$681,929 


$7,60 




100.0 








Under $20 
$20 to $40 
$40 to $60 
$60 i over 


4 

39 
66 
40 


320, 658 
3,942,321 
3,845,201 

1,465,484 


22,279 
310,982 
248,206 
100, 462 


6.95 
7.89 
7.65 
6.86 


91.4 
103.8 
100.7 

90.5 


Total 
(Average ) 
















Total 
(Average ) 


71 


1,847,402 


117,557 


6.55 


83.6 




— 


Under $40 


Under $20 
$20 to $40 
$40 to $60 
$60 & over 


1 
10 

?1 
29 


28,935 
282,878 
786,840 
748,751 


720 
21,454 
46,395 
48,788 


2.49 
7.58 
5.90 
6.52 


32.8 
99.7 
77.6 
85.8 
















Total 
(Average ) 


50 


2,777*177 


214,788 


7.73 


101.7 








tfader $20 
$20 to $40 
$40 to $60 
$60 S: over 


2 
15 
25 

8 


121,084 

893,474 

1,553,809 

408,810 


9,929 

54,218 

119,452 

31,189 


8.20 
6.07 
8.82 
7.63 




107.9 
79.9 
116.1 
100.4 


$40 to $80 


















Total 
(Average ) 


25 


2,654,275 


206,361 


7.77 


102.2 








Older $Sa 
$20 to $40 
$40 to $60 
$60 & oTor 


1 

9 

10 

S 


170,641 
1,071,159 
1,104,552 

507,923 


11,630 
91,887 
82,359 
20,485 


6.82 
8.58 
7.46 
6.65 


89.7 

112.9 

98.2 

87.5 


$80 to $180 


; 




; 




1 








Total 
(Average) 


S 


1,694,810 


143,423 


8.46 


111.3 






$160 k over 


Itader $20 
$20 to $40 
$40 to $60 
$60 & over 


5 


1,694,810 


143,423 


8.46 


lll.S 




; 



Average $7*60 



213 



per $100 of total net sales, however, 
in which we are most interested, are 
those for stores of essentially the same 
size, but with different amounts of 
inventory in relation to sales. These 
amounts are found in Tables 139 to 



1-42, inclusive. "Within each group, 
when the stores are classified by size 
and by amounts of inventory in rela- 
tion to sales, there seems to be no 
general tendency for the amounts of 
wages and salaries per $100 of total 



TABLE 143 

AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER AMOUNT SOLD 

PER $1 OF INVENTORY, FOR STORES CLASSIFIED BY SIZE AND AMOUNT OF 

INVENTORY PER $100 OF TOTAL NET S.VLES, 1919, 1918, AND 1914 



Claaelfied 

Total 
Bst Sales 
(In 000' 8) 



A&OljLCt of 

Invactory 

por $100 of 

Total 

Uet e&lea 



Aitintmt of Wages and Salaries per $100 of Total Net Sales 
per Amount Sold per $1 of Inventory 



Qraphle 



Qraptio 



Oraphlo 



Actual . Actual .1 . Actual J .1 Aet-ial .... 
jjO \Z ^ |6 »p I? $;; $ 3 $0 »g , U i^ to f 2 »4 ip 



Total 
(Aierage) 



Obter 140 



$40 to tao 



teo to |160 



Total 
(Avera.'^) 



$2.74 



Under $20 
$20 to ^0 
$40 to $60 
$S0 i over 



Total 
(Average ) 



Oodar $20 
$20 ts $40 

$40 to $60 
$60 t over 



Total 
(Average ) 



IToder $20 
$20 to itO 

$10 to $eo 

$80 8: OTor 



Total 
(Average! 



Under $20 
$20 to $40 
$40 to $30 
$60 & over 



$180 k over 



Total 
(Average) 

Under $20 
$20 fo $40 
$40 to $60 
$60 & over 



0.92 
2.M 

4.52 



5.31 



0.44 
1.82 
2.66 

4.50 



3.00 



0.89 
1.83 
3.47 

4. eg 



3.3) 
3.93 



:.ci 

0.79 
2.44 

5.69 



$2.51 



Avorage $2.T4 



0.94 
2.22 

3.18 
3.60 



1.16 
2.21 
5.55 



2.30 

0.68 
1.53 
3.12 
e.95 



2.60 



1.21 
2.24 
5.46 
4.33 



2.06 

0.84 
2.32 
2.58 



Avaraso $2.51 



$3.00 



0.68 
2.57 
3.14 

4.52 



1.41 
2.34 
4.59 



5.27 



0.53 
2.26 
5.01 
S.OS 



2.67 
3.12 
3.19 



2.36 



0.70 

2.55 
4.19 



Average $3.00 



$3.30 



1.22 
2.37 

3.33 
4.80 



3.57 



2.27 
2.95 
4.56 



3.47 



1.44 

i.sa 

4.41 
5.34 



3.17 



1.19 

2.57 
5.73 
4.66 



£r.-iras9 $3.30 



214 



net sales to increase or to decrease 
as the amounts of inventory per $100 
of total net sales increase. In some 
groups, if the details for the combined 
years are taken as an illustration, the 
amounts decrease, while in others 
they increase. In view of this fact, 
it would be unsafe to generalize for 
all of the store-groups. The amounts, 
however, are of sufficient interest to 
warrant publication. 

Table 143 shows what it cost in 
wages and salaries per $100 of total 



net sales to sell the actual amounts 
sold per $1 of inventory * in 149 
stores classified by size and amount 
of inventory in terms of sales. By 
using this more detailed unit, the un- 
certain direction of change for wages 
and salaries is eliminated. For the 
stores as grouped, the amounts become 
larger as the size of the inventory in 
relation to sales increases. Such a con- 
dition for selling expense was observed 

* The method by which this unit is com- 
puted is explained on page 4, item 17. 



TABLE 144 

AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER STOCK TURN- 
OVER, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OP INVENTORY 
PER $100 OP TOTAL NET SALES, 1919 



Classiried 


Amount of 

Inventory 

per $100 of 

Total 

Het S&les 


Hmnber 

of 
Storea 


nages and Salaries ner $100 
Total Het Sales 


of 


Wages and Salar' 03 per vlOO of Total Net 
per Stool: Turnover 


Sales 


Total 
Net Sales 
(In OOO'a) 


Anoust 


Per Gent. 


Ajmsunt 


Fer Cent. 


Graphlo 
3 20 40 60 " CO 100 120 


Actual 


Or»P>il<' 1 Actual 
3 20 40 60 80 100 120 140 160 J30 




Total 
(Avorago) 


282 


$6.67 




100.0 


$3.03 




100.0 






i^ 




Dndar $20 
$20 ta $40 
$40 4 over 


17 
155 

112 


5.64 
7.05 

6.07- 


64.6 
105.7 
91.0 


1.28 
2.94 
4.34 


42.2 


(Average ) 










143.2 










Total 
(Average) 


53 


4.26 




63.9 


2.84 




93.7 






ttider 440 


Onder $20 
$20 to $40 
$40 t over 


10 
23 


3.46 

4.64 


— 


S1.9 
69.6 


1.65 
3.57 


— 


54.6 










Total 
(Average ) 


lOS 


5.36 


80.4 


2.98 











— 




$40 te $80 


Under $20 
$20 to $40 
$40 k over 


3 

45 
58 


3.56 
4.93 
5.84 


53.4 
75.9 
87.6 


0.85 
2.24 

5.89 


28.1 
73.9 




1 








Total 
(Average ) 


98 


6.85 


102.7 


3.61 














Under $20 
$20 to $40 
»40 4 over 


S 
63 
50 


6.74 
6.99 
6.59 


101.0 
104.8 
98.8 


1.60 
3.18 
4.39 


■^" 




$80 to $180 
















i 








Total 
(Average ) 


45 


7.15 


107.2 


2.55 










— 






Under 520 
$20 to $40 
$40 i over 


9 
55 

1 


5.63 
7.56 
5.15 


84.4 
113.6 
77.2 


1.25 
2.92 
4.29 




$180 k over 


^^^^"^^ • 










141.6 







Average 06.67 



Average 03*09 



215 



in the discussion of Table 27 and it 
■would naturally follow for wages and 
salaries, similarly measured, in view 
of the proportion which they consti- 
tute of total selling expense. Table 
143 should be considered in connec- 
tion with Tables 139 to 142, inclusive. 
In Table 144, the records of 282 
stores are studied for 1919, when the 



stores are classified by size and by the 
amounts of inventory per $100 of 
total net sales. In view of the fore- 
going discussion, it is unnecessary to 
consider further the amounts of wages 
and salaries per $100 of total net sales 
for the stores as classified. One sec- 
tion of this table, however, is of 
interest. The right-hand columns 



TABLE 145 

TOTAL NET SALES, IN\'ENTORY, AND AMOUNT OF INVENTORY PER $100 OF TOTAL NET 

SALES, FOR 149 IDENTICAL STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES, 

1919, 1918, AND 1914, COMBINED 



Classified 

Total 
Net Sales 
(in 000' 8) 



Amount or 

Wages U 

Salaries 

per SlOO of 

Total 

Met SalQS 



Storo- 
yaars 



Total 
Net Sales 



Inventory per $100 of Total Net Sales 



Total 
Inventory 



Qraphlo I 

SO 40 60 80 100 120 140 160 



Total 
(Average ) 



$43,599,972 



$16,369,406 



Total 
(Average ) 



Uhdsr %\ 

^ to Ja 
$8 !c over 



227 
125 



5,689,635 
24,298,987 
13,6U,350 



2,268,589 
9,067,776 
5,033,041 



Total 
(Average ) 



3,532,911 



1,989,518 



Cbder (40 



Under $4 
$4 to $8 
$8 fc over 



954,235 

1,804,605 

774,073 



502,665 

1,034,030 

462,823 



Total 
(Average ) 



9,360,348 



4,254,795 



|40 to tBO 



Under $4 
$4 to $3 
|8 & over 



2,315,545 
4,305,648 
2,738,155 



947,850 
2,021,129 
1,285,816 



Total 
(Average) 



13,121,494 



5,193,131 



^0 to (ISO 



Under 54 
$4 to $3 
$8 & over 



1,637,290 
6,151,092 
5,333,112 



631,181 
2,622,806 
1,939,144 



Total 
(Average ) 



17,585,219 



4,931,962 



flBO & over 



Under $4 
$4 to $8 
^ & over 



779, 567 
12,039,642 
4,766,010 



186,893 
3,399,811 
1,345,258 



§37.54 



39.87 
57.32 
36.98 



56.31 



52.68 
56.74 
59.79 



45.46 



40.88 
46.96 
46.96 



39.58 



38.55 
42.64 
36.36 



28.05 



23.97 
28.24 
20.23 



«■ 




A-verage (37. 64 



100.0 



106.2 
99.4 
98.5 



150.0 



140.5 

isia 

1S9.3 



121.1 



108.9 
125.1 
125.x 



105.4 

102.7 

U3.6 
96.9 



74.7 

63.9 
75.2 
75.a 



216 



TABLE 146 



TOTAL NET SALES, INVENTORY, AND AMOUNT OF INVENTORY PER $100 OF TOTAL NET 

SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF WAGES 

AND SALARIES PER $100 OF TOTAL NET SALES, 1919 





Amount of 
Wages Jc 
Salaries 
per $100 of 
• Total 
Net Sales 


Number 

of 
Stores 


Total 
Net Sales 


Total 
Inventory 


Inventory per $100 of Total Nat Sales 


Total 
Net Sales 
(In OOO's) 


Amount 


Per Cent. 


Oraphle . ^ . 
Actual 

3 20 40 60 80 100 120 140 160 180 200 




Total 
(Average ) 


149 


SS0,303,641 


$6,667,056 


$32.84 












Total 


Under $4 
S4 to J8 
$8 S: over 


42 
71 
36 


3,504,985 
11,248,575 
5,550,081 


1,237,010 
3,679,392 

1,750,654 


55.29 
32.71 

31.54 




(Average ) 




107.5 










i 






Total 
(Average) 


14 


• 428,714 


215,607 


50.29 


153.1 




: 


ttider $40 


Under $4 

$4 to Se 

$8 & over 


5 
8 

1 


144,225 
248,945 

35,544 


64,511 
128,272 
22,824 


44.73 
51.53 
64.21 


' 




156.9 
195.5 








Total 
(Average ) 


55 


5,082,152 


1,280,953 


41.56 




126,6 


^ to $80 


Under $4 
»4 to $8 
{8 & over 


22 
23 
10 


1,226,685 

1,324,685 

530,782 


481, 117 
576,055 
223,781 




i 








132.4 
128.4 




42.16 






Total 
(Average ) 


56 


6,607,089 


2,366,933 


35.82 


1 


109.1 


tao to liso 


Under J4 
$4 to $8 

tS U over 


13 
25 

20 


1,354,508 
2,850,532 
2,402,049 


504,489 

1,055,864 

805,580 






113.4 
112.8 
102.3 




















Total 
(Average ) 


24 


10,185,686 


2,803,563 














#180 Se over 


Under $4 
«4 to «8 
t8 ic over 


2 
17 
5 


779,567 
6,824,413 
2,581.706 


186,893 

1,919,201 

697,469 


23.97 


73.0 




27.02 




82.3 



show, for different groups of stores, 
the amounts of wages and salaries per 
$100 of total net sales per stock turn- 
over.* That is, wages and salaries 
are measured in terms of a unit of 
sales for a single turn. 

For this group of stores, as goods 
are sold, it cost in wages and salaries 
$6.67 to sell $100 worth of goods, 

* The method by which this unit is com- 
puted is explained on page 4, item 19. 



Average $32.84 

while it cost in wages and salaries per 
stock turnover, $3.03 to sell $100 worth 
of goods. The amounts of wages and 
salaries required to sell $100 worth of 
goods increase as stores increase in 
size, but when they are expressed in 
terms of sales per turnover, they are 
essentially constant for the stores 
with sales under $80,000, increase for 
those with sales from $80,000 to $180,- 
000 and noticeably decrease for those 



217 



with sales of $180,000 and over. 
While the expense, due to wages and 
salaries per $100 of total net sales in 
the stores with sales of $180,000 and 
over, is 170.2 per cent, of the average 
for all stores, the amount of wages 
and salaries per $100 of total net sales 
per stock turn is 84.2 per cent, of the 
average. 
For the stores as a whole and when 



classified by size, the amounts of 
wages and salaries per $100 of total 
net sales per stock turnover increase 
rapidly as the amounts of inventory 
per $100 of total net sales increase. 
The nature of the increase may be 
illustrated by selecting the 106 stores 
which had sales in 1919 of between 
$40,000 and $80,000. For the three 
stores which had inventories less than 



TABLE 147 

TOTAL NET SALES, INVENTORY, AND AMOUNT OF INVENTORY PER $100 OF TOTAL NET 

SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF WAGES 

AND SALARIES PER $100 OF TOTAL NET SALES, 1918 





/Mount of 

V/aj;e3 & 

Ealcxles 

per JlOO of 

Total 

Net Sales 


Hujnber 

of 
Stores 


Total 
Net Sales 


Total 
Inventory 


Inventory per $100 of Total Net Sales 


Total 


Amount 


Per Cent. 


(m OCO's) 


Graphic 1 , .. , 
' Actual 
20 40 60 80 100 120 140 160 




Total 
(Avertgg) 


149 


$14,322,667 


$5,804,340 


$40.53 


^^^^^! 






• 






fee or t4 
14 to $3 
te t over 


34 
70 
45 


1,594,006 
8,149,108 
4,579,553 


736,259 
3,311,650 
1,756,431 


46.19 

40,64 
38.35 


114.0 


Total 
(Average) 














! 






Total 
(Averese) 


42 


1,256,795 


734,523 


58.44 


1*4.2 








tJnder 540 


Under t-i 
§4 to J3 
J3 !c over 


15 
17 

10 


420,124 
502,214 
334, 457 


215,918 
318,849 
199,755 


51.39 
63.49 
59.73 






156.6 




1 






i 






Trtnl 
(Average) 


60 


3,501,019 


1,729,460 


49.40 


121.9 








$40 to ^0 


Unier }4 
C4 to CS 
$8 k over 


16 
25 
19 


891,100 
1,418,558 
1,191,361 


393,549 
743,552 
592,259 


44.13 
52.42 
49.71 


^\ 


109.0 




129.3 






122.6 




I 






Total 
(Avoi-Bce) 


M 


5,860,130 


1,741,562 


45.12 


111.3 




1 




ieo to $180 


toser ?4 
$4 to Co 
JS £c over 


5 
19 
11 


282,782 
2,351,867 
1,225,381 


126,692 

1,183,993 

430,877 


44.80 
50.34 
35.16 


110.5 




124.2 






86.e 




1 

i 

t 






Iott.1 
(AveiaE* ) 


14 


5,704,723 


1,598,795 


28.03 


69.2 


|iao U ovor 


UnCer t4 
(4 to $8 
Je tc over 


9 

e 


3,876,369 
1,828,354 


1,065,256 
533,539 


27.48 
29.13 


67.a 
72.0 



Averene S40.53 



218 



TABLE 148 

TOTAL NET SALES, INVENTORY, AND AMOUNT OF INVENTORY PER $100 OF TOTAL NET 

SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF WAGES 

AND SiVLARIES PER $100 OF TOTAL NET SALES, 1914 





Amount of 

Waces k 

Salaries 

per $100 of 

Total 

Ket Sales 


number 

of 
Stores 


Total 
Met Sales 


Total 
Inventor? 


Inventory per flOO of Total Net Sales 


Total 
Net Sales 


Amount 

( 


Per Cent. 


(in 000' 3 ) 


°^''P^^° Actual 
) 20 40 60 80 100 120 140 




Total 
(Average) 


1-S9 


C8, 973, 664 


53,898,010 


$43.44 




100.0 






Total 


Under $4 
J4 to sa 
$8 & over 


19 

85 
44 


590,644 
4,901,304 
5,481,715 


295,320 
2,076,734 
1,525,956 


50.00 
42.37 
43.83 


115.1 

97.5 

100.9 


(Average ) 














Total 
(Average) 


71 


1,847,402 


1,039,388 


£6.26 


i 


129.5 






Under }40 


Under $4 
|4 to 58 
J8 & over 


15 
41 
IS 


369,884 

1,053,446 

404,072 


222,236 
576,909 
240,243 


57.00 
54.75 
59.46 


131.2 
126.1 

136. 9 














Total 
(Average ) 


50 


2,777,177 


1,244,362 


44.81 


105.3 






J40 to 880 


Under 54 
$4 to $8 
$8 & over 


4 
27 
19 


200,760 
1,560,405 
1,016,012 


73,084 
701, 522 
469,776 


36.40 
44.96 
46.24 


I 


83.3 
103.5 
106.4 














Total 
(Average ) 


23 


2,654,275 


1,084,636 


40.86 


94.1 






|80 to $180 


Under t-i 
$4 to ^ 
|8 & over 


14 
9 


948,593 
1,705,682 


382,949 
701, 687 


40.37 
41.14 


92,9 
94.7 








; 




Total 
(Average) 


5 


1,694,810 


529,604 


31.25 


71.9 




i 


$180 & over 


Under 04 
$4 to f8 
§8 8: over 


4 

1 


1,338,860 
355,950 


415,354 
114,250 


31.02 
32.10 


71.4 
73.9 











AveriiQe ^43. 44 



$20, it cost in wages and salaries 
$3.56 to sell $100 worth of goods, but 
per turnover the expense was but 
$0.85. For those that had inventories 
between $20 and $40 per $100 of total 
net sales, it cost in wages and salaries 
for each $100 of total net sales, $4.93, 



but for each unit of sales per stock 
turnover, $2.24. Similarly, for the 
stores which had inventories of $40 
and over, it cost $5.84 for each $100 
of total net sales, but for $100 of sales 
per stock turnover the amount was 
$3.89. 



219 



TABLE 149 

TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OP WAGES AND SALARIES 

PEE $100 OF SELLING EXPENSE, FOR 149 IDENTICAL STORES CLASSIFIED 

BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL 

NET SALES, 1919, 1918, AND 1914, COMBINED 



Classiricd 

Total 
Vet Sales 


Amo>int of 

Invo.'itory 

per vlOO of 

Total 

Net Sal'es 


N'jjnber 

of 
Store- 
years 


Total 
Selling 

Expense 


Total 
Salaries 


Wages and Salaries per $100 of 
Selling Expense 


Anoimt 


Per Cent. 


<ln OOO's) 


Graphic 

Actual 

) 20 40 60 30 100 120 




Total 
(Average) 


447 


$4,745,829 


$3,174,021 


$66.88 




100.0 










Under $20 
;j20 to $40 
$40 to 06O 
Oeo '- over 


14 
163 
177 

88 


172,900 

3,038,035 

1,123,957 

355,377 


107, 920 

2,066,831 

754,274 

244,996 


62.42 
66.93 
66.81 
68.34 


93.3 
100.1 


Total 
(Average ) 


; 


. 








10'', 9 




: 






Total 
(Averar^o ) 


127 


298,231 


208,053 


69.75 












Under 020 
$20 to iiO 
§40 to $60 
§60 t over 


1 
18 
52 
56 


948 
54,036 
112,294 
130,953 


720 
33,972 
75,000 
98,361 


75.95 
62.87 
66.79 
75.11 




Under $40 




94.0 
99.9 




II III 


112.3 




i 






Total 
(Av'.-rage ) 


165 


877,524 


616,677 


70.27 


105.1 




; 






Under $20 
$20 to $40 
•>40 to $60 
tfSO k ovor 


6 
S2 

82 
25 


29,622 
283,795 
428,579 
135,528 


20,502 
187, 969 
309,439 

98,767 


69.21 
66.23 
72.20 
72.88 


103.5 


440 to $80 


' 


99.0 






103.0 










: 






Total 
(Average) 


112 


1,445,039 


963,535 


66.58 


99.7 




; 






Under $20 
$20 to $40 
$40 to $60 
$60 & over 


5 

60 

40 

7 


53,399 
802,575 
499,659 

89,396 


38,199 
563,204 
314, 184 

47,368 


71.54 
70.18 
62.83 
53.55 




$80 to $ieo 


; 


104.9 




! 


94.0 




I 


80.1 




Total 
(Average) 


43 


2,125,045 


1,385,755 


55.21 


97.5 




I 


; 


^180 o; over 


Under $20 
§20 to $40 
$40 to $60 
$60 2; ovor 


2 

38 

3 


88,931 

1,947,679 

88,435 


48,499 

1,281,506 

55,551 


54.54 
65.30 
62.93 


81.5 
98.4 




1 


94.1 




J 





fivorr.;o 06&.Ba 



220 



The detail in Table 144 may be 
studied with profit by merchants who 
are interested in measuring the effect 
which turnover has on wages and 
salaries as a part of selling costs. 

Tables 145 to 148, inclusive, show 
the amounts of inventories per $100 
of total net sales in the combined and 
individual years for stores classified 
by size and by the amounts of wages 
and salaries paid per $100 of total 
net sales. The purpose of these tables 
is to determine the average size of the 
inventories in terms of sales for stores 
paying different amounts of wages 
and salaries per $100 of total net 
sales. When no account is taken of 
store size, the inventories are lowest 
when the amounts of wages and 
salaries in terms of sales are highest. 
That is, an inverse relationship ob- 
tains. When size of store is con- 
sidered this relationship does not 
hold. Indeed, an inverse condition 
holds. That is, small inventories 
generally accompany small amounts 
of wages and salaries when both are 
expressed in sales. In each year the 
size of the inventories expressed in 
terms of sales varies inversely with 
the size of the store similarly ex- 
pressed. 

Tables 149 to 152, inclusive, show 
the amounts of wages and salaries per 
$100 of selling expense for each of 
the years for stores classified by size, 
and further by the amounts of inven- 
tories per $100 of total net sales. The 
total sections of these tables agree 
with the details of Table 138 and do 
not call for further comment. The 
remaining parts of the tables require 



brief consideration inasmuch as they 
show the amounts of wages and sal- 
aries per $100 of selling expense for 
stores classified by size and by 
amounts of inventory in terms of 
sales. 

As the stores increase in size, gen- 
erally speaking, the amounts of wages 
and salaries per $100 of selling ex- 
pense decrease. There is one excep- 
tion to this rule for the combined 
years and one each for 1919 and 1918. 
Otherwise, the condition is general. 
What is of most interest in this con- 
nection, however, is not store size 
alone, but stores of the same size with 
varying inventories. When the de- 
tails are considered from this point 
of view it is impossible to generalize 
for all the groups as to whether the 
amounts increase or decrease as the 
inventories increase. For some 
groups of stores, as for instance those 
with sales of $80,000 to $180,000 for 
the combined years, the amounts de- 
crease, while for other groups, as for 
instance the group with sales of 
$40,000 to $80,000, there is a tendency 
for the amounts fiirst to decrease and 
then to increase with increasing in- 
ventories. 

Nothing further need be said con- 
cerning the amounts for stores with 
different sales and different inven- 
tories in relation to sales. The actual 
figures are supplied for what they are 
worth. They constitute standards or 
norms for these stores, and from year 
to year show a remarkable con- 
sistency. 

Brief discussion is required of 
Table 153. In 4is table 282 stores 



221 



TABLE 150 

TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES 

PER $100 OF SELLING EXPENSE, FOR 149 STORES CLASSIFIED BY SIZE AND 

BY AMOUNT OF INV'ENTORY PER $100 OF TOTAL NET SALES, 1919 



Clacoiriod 

Kot e-t3.?8 
(In OOO'a) 



Total 
(ivor&ee) 



V-.Aer S-10 



540 to J 30 



tso to Jieo 



$180 u ov«r 



Amount of 

Inventory 

per $100 of 

Total 

Net Galea 



Total 
(Averaf.'^ 5 



Under $20 
$20 to $40 

|40 to $eo 

J60 fc over 



Total 
(AvarEgo) 



Undoi- 520 
$20 to $40 
$40 to §60 
§60 & over 



Total 
(Averara ) 



Under fSO 
|20 to $40 
$40 to $60 
$60 Is. over 



Total 
(Average ) 



Under $20 
$20 to $40 
$40 to $60 
$60 t over 



jjumber 

of 
Stores 



7 

63 
51 

e 



2 
22 

28 
S 



Total 
(Averago ) 



Under $20 
$20 to $40 
$40 to $60 
$60 & over 



Total 

SelllrAg 
Expense 



$2,135,072 



105,711 

1,649,518 

545,965 

33,673 



29,013 



6,275 

15,797 

6,S45 



233,843 



7,320 

94,720 

122,592 

9,211 



700,800 



34,507 
465,124 
183, 648 

17,721 



1,171,411 



64,084 

1,083,399 

23,928 



Total 
TCt-Ees k 
Salaries 



$1,430,061 



64,927 

1,111,412 

230,646 

23,075 



19,303 



2,640 
10,750 

5,913 



170, 682 



5,875 

65,760 

91,847 

7,200 



479,344 



26,569 

326,696 

116,116 

9,963 



760,732 



32,483 

716, 316 

11,933 



Wages btA Salaries per $100 of 
Selling E>:pense 



Per Cent. 



Graphic I 

EO 40 60 80 100 120 140 



$60.93 



61.42 
67.33 
65.67 
68.12 



42.07 
68.05 
85.13 



72.99 



80.26 
69.43 

74.92 
78.17 



68.40 



77.44 
70.24 
63.23 
56.22 



64.94 



50.69 
66.12 
49.87 



100,0 

91.7 
100.6 

99.5 
101.7 



62.3 
101.6 
127.1 



109.0 



119.8 
103.7 
111.9 
116.7 



102.1 



115.6 

104.9 

94.4 

83.9 



97.0 



75.7 
98.7 
74.5 



Aver are $66.98 



222 



TABLE 151 



TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES 

PER $100 OF SELLING EXPENSE, FOR 149 STORES CLASSIFIED BY SIZE AND 

BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1918 





Amount of 

Inveitory 

per vlOO of 

Total 

Net Sales 


KijT.ber 

of 
Stores 


Total 
Selling 
Expense 


Total 
nagoa i 
Salaries 


■./ages and Salaries per ClOO of 
Selling Expcnco 


Clascifiod 

Total 
Net Sales 


Aroiint 

C 


Per Cent. 


(in OOO's) 


) 20 40 eo 80 100 120 




Total 
(Average ) 


149 


$1,573,249 


$1,062,031 


$67.51 




100.0 








Under $20 
$20 to $40 
$40 to $60 
$60 S: over 


3 
46 
60 
40 


32,117 
937,441 
427,462 
176,229 


20,714 
644,437 
275,422 

121,458 


64.50 
68.74 
64.43 
63.92 


: 




Total 
(Average ) 




101.8 
95.4 

103.1 
















Total 
(Average ) 


42 


101,621 


71,303 


70. ■55 


104.1 


tinder $40 


Under $20 
$20 to $40 
$40 to $60 
$60 4 over 


6 
13 
23 


17,520 
27,892 
56,209 


9,878 
17,855 
43,660 


56.38 
64.01 
77.67 


• 


83.5 

94.8 

115.0 




; 




■; 




Total 
(Average ) 


60 


331,958 


231,207 


69.65 


103.2 




Under $20 
$20 to $40 
$40 to $60 
$60 & over 


2 
15 
29 

14 


7,270 

97,097 

144, 693 

82,898 


4,690 
67,991 
98,140 
60, 378 


64.02 
70.02 
67.83 
72.03 


; 


95.7 
103.7 
100.5 
107.9 


$40 to $80 


















Total 
(Average ) 


33 


422,051 


277,830 


65.03 


97.5 




! 


$80 to $180 


Under $20 
$20 to $40 
$40 to $60 
$60 & ovep 


14 

16 

3 


194,559 

190,370 

37, 122 


144,701 

115,709 

17,420 


74.37 
60.78 
46.93 


110.2 
90.0 
69.5 




■ 




; 




Total 
(Average ) 


14 


717,619 


481, 601 


67.11 


99.4 




Under $20 
$20 to ■iiO 
:J40 to $60 
ieo C: over 


1 

11 

2 


24,847 

628,265 

64,507 


15,016 

421,367 
43,713 


64.46 
67.15 

67.77 


; 


95.5 

99.5 

100.4 


$180 & over 


I 




1 




i 



Average $67,51 



223 



TABLE 152 

TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES 

PER $100 OF SELLING EXPENSE, FOR 149 STORES CLASSIFIED BY SIZE AND 

BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1914 





Amount of 

Inrentory 

per $100 of 

Total 

Set S&laa 


Dumber 

of 
Stores 


Total 
Selling 
Expense 


Total 
Wages * 
Salaries 


Wages and Salaries per $100 of 
Selling Ejcpense 


Total 
Ket Sales 
(In OOO'a) 


Amount 


Per Cent. 


Oraphlc 

Actual 

3 20 40 60 80 100 120 




Total 
(Average ) 


149 


$1,037,508 


$681,929 


$65.73 






100.0 










Tfrulnr $20 
$20 to $40 
$40 to $60 
$60 & over 


4 
39 
66 
40 


55,072 
501,126 
355,540 
145,770 


22,279 

310, 962 
248,206 
100. «92 


63.52 
62.06 
69.81 
68.92 


96.6 

94.4 

106.9 

104.9 


Total 
(ATorage ) 
















Total 
(Average ) 


71 


167,592 


117,357 


70.03 


106.5 










Dnder $20 
$20 to $40 
§40 to $60 
$60 fc over 


1 
10 
31 
29 


948 
30,241 
68,605 
67,798 


720 
21,454 

46,395 
48,788 


75.95 
70.94 
67.63 
71.96 




U5.5 
107.9 


Under $40 
















109.5 




^^^^^^ 




Total 
(Average ) 


50 


311, 723 


214,768 


68.90 






104.8 










Onder $S0 
$20 to $40 
$40 to $60 
$60 & over 


2 

15 

25 

8 


15,032 

91,978 

161,294 

43,419 


9,929 

54,218 

119,452 

31,189 


65.05 
68.95 
74.06 
71.63 


100.5 
89.7 
112.7 
109.3 


$40 to $80 


















Total 
(Average ) 


23 


322,178 


206,361 


64.05 






97.4 








Under $20 
$20 to $40 
$40 to $60 
$60 & over 


1 

9 

10 

3 


19,092 
142,892 
125,641 

34,555 


11,630 
91,887 
82,359 
20,485 


60.92 
64.31 
65.55 
59.29 


92.7 
97.8 
99.7 
90.2 


$80 to $180 


















Total 
(Average) 


5 


236,015 


145,423 


60.77 


92.5 






$180 & OTer 


Under $20 
$20 to $40 
$40 to 60 
$60 k over 


5 


236,015 


142.423 


60.77 


92.5 









Average $65.73 



224 



TABLE 153 



AMOUNT OF WAGES AND SALARIES PER $100 OP SELLING EXPENSE PER STOCK TURN- 
OVER, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OP INVENTORY 
PER $100 OF TOTAL NET SALES, 1919 



Cl.SBiried 

Total 
Net Sales 


Amount of 

Inventory 

per $100 of 

Total 

Met Sales 


Number 

of 
Stores 


Oa^e and Salaries per $100 of 
Selling Expense 


Wages and Salaries per $100 of Selling Sxpense 
per Stoelc Turnover 


Onount 


Per Cent. 


Amount 


Per Cent. 


<ln OOO'b) 


°"P"= 1 Actual 
20 40 60 80 100 120 


°~'*^'' 1 Aetul 

3 20 40 60 80 100 120 140 160 ISO 200 




Total 
(Average) 


282 


$65.67 


1 


100.0 


$29.85 




100.0 






j 


Total 
(ATOrage ) 


Under $20 
$20 to $40 
$40 Ic over 


17 
1S3 
112 


62.55 
65.51 

68.70 


' 


95.2 
99.5 
104.6 


14.21 

27.21 
49.07 


47.6 
91.S 
164.4 


















Ttotal 
(Average ) 


J5 


71.09 


108.3 


47.39 


158.8 








Under $40 


nodsr $20 
$20 to $40 
$40 k over 


10 
25 


60.52 
75.75 


\ 


92.2 
lis. 3 


23.82 
58.25 


96.5 
195.1 












i 




Total 
(Average) 


106 


71.92 


109. S 


39.96 


133.9 






^— 




Dnder $20 
$20 to $40 
$40 & over 


5 
45 
58 


60.89 
69.19 
74.55 


92.7 
105.4 
113.5 


14.50 
31.45 
49.70 


46.6 
105.4 
166.5 


$40 to $80 


















Total 
(Avorage ) 


98 


67.45 


ioe.7 


35.50 


118.9 






— 




Under $20 
$20 to $40 
$40 4 over 


6 

65 
50 


76.42 
68.05 
65.24 


U6.4 
103.6 
99.5 


18.20 
30.92 
43.49 


61.0 
10S.6 
145.7 


$60 to $180 








^""""""^^^^^ 










Total 
(Average ) 


45 


62.93 


95.8 


22.48 






; 






Snder $20 
$20 to $40 
$40 4 over 


9 
55 

1 


60.72 
63.58 
49.87 


92.5 
96.8 
75.9 


13.49 
24.4S 
41.56 




45.2 

ei.9 

1S9.2 


JlSO * over 









Average $65.67 



are classified for 1919, by size and by 
the amounts of inventory in relation 
to sales. For each group of stores two 
measures of the amounts of wages and 
salaries are supplied. The amounts 
are expressed, first, in relation to sell- 
ing expense, and second, in relation to 
selling expense per stock turnover.* 

For the 282 stores the proportion 
which wages and salaries constitutes 
of each $100 selling expense is $65.67. 
As the stores increase in size, this pro- 

• The method by which this unit is com- 
puted is explained on page 4, item 21. 



Average $29.85 

portion decreases, the amount for the 
stores with sales of $180,000 and over 
being $62.93. When the average 
amount of wages and salaries per 
$100 of selling expense — $65.67 — is 
expressed per stock turnover, it be- 
comes $29.85. In other words, stock 
is turned on the average 2.2 times. 
Wages and salaries per $100 of total 
selling expense per turnover decrease 
as the stores increase in size, the 
amount being $22.48 for the stores 
which sold, during 1919, $180,000 
and over worth of goods. 



225 



As the amounts of inventory in 
relation to sales increase for each 
group of stores, as measured by size, 
the amounts which wages and salaries 
constitute of each $100 of selling ex- 
pense per turnover rapidly increase. 
The amounts for the group of stores 
with sales of $40,000 to $80,000 may 
be used to illustrate this. When the 
inventories were less than $20 per 
$100 of total net sales, it cost $14.50 
in wages and salaries per $100 of 
selling expense per turnover. When 
the inventories were $20 to $40 per 
$100 of total net sales, the amount 
was $31.45, and when the inventories 
were $40 and over, it was $49.70. 
That is, the costs rapidly increase as 
the inventories in terms of sales in- 
crease in size. This is only another 
way of saying that, to sell a given 
amount of goods in a year, the costs 
attributable to wages and salaries in 
relation to the rates of turnover 
rapidly decrease as the inventories in 
relation to the sales decrease. That 
is, the cost per unit of turnover be- 
comes less as the rates at w^hich the 
stock is turned, increase. 

The details of Table 153 should be 
considered in connection with those 
of Table 144. 

C. — Summary. 

(1). The amounts of wages and 
salaries per $100 of total net 
sales for all stores, for each 
of the years, tend generally 
to decrease as the amounts of 
inventory per $100 of total 
net sales increase. 



(2). The amounts of wages and 
salaries per $100 of total net 
sales for the amount sold for 
each dollar of inventory and 
also per stock turnover in- 
crease as the size of the 
inventory in terms of sales 
increases. This holds for 
stores treated as a whole and 
also when classified by size. 

(3). The amounts of wages and 
salaries per $100 of total net 
sales and per $100 of total 
net sales for the amount sold 
per dollar of inventory de- 
creased between 1914 and 
1918, and 1918 and 1919. 

(4). The amounts of wages and 
salaries per $100 of selling 
expense tend to increase as 
the inventories in terms of 
sales increase, for all stores. 
For stores of a given size, the 
direction of change is un- 
certain. 

(5). The amounts of wages and 
salaries per $100 of total sell- 
ing expense per stock turn- 
over decrease as stores in- 
crease in size and increase as 
the amounts of inventory in 
terms of sales increase. 

3. — YEARLY AMOUNTS OF W^AGES AND 
SALARIES IN RELATION TO THE 
AMOUNTS OF GOODS SOLD PER PULL- 
TIME SALES-PERSON, AND TO THE 
METHODS BY WHICH SALESMEN ARE 
PAID, FOR STORES CLASSIFIED BY 
YEARS, BY SIZE, AND BY LOCA- 
TION. 



226 



The discussion of the amounts of 
wages and salaries paid to those who 
are selling goods under the condition 
established in this section closely fol- 
lows the corresponding section, pages 
85 to 127, relating to the total 
amount of selling expense for stores 
similarly classified.* 

(1) — YEARLY AMOUNTS OF WA6ES 
AND SALARIES IN RELATION TO 
THE AMOUNTS OF GOODS SOLD 
PER FULL-TIME SALES-PERSON. 

This section has to do with the 
amounts of wages and salaries paid 
in stores when they are classified by 
amounts of goods sold per full-time 
sales-person; the discussion relating, 
first, to stores in different years, 
second, to stores of different size, and 
third, to stores of different size and 
location. 

A. — Yearly Amounts of Wages and 
Salaries per $100 of Total Net 
Sales and per $100 of Selling 
Expense, 1919, 1918, and 1914. 

The year-to-year comparison of the 
amounts of wages and salaries paid to 
salesmen is based upon the records of 
the 146 identical stores which are 
discussed on page 86. The average 
expense in wages and salaries to sell 
$100 worth of goods was $7.20 for 
1919, 1918, and 1914, combined. In 
1914 the amount was $7.45, in 1918, 
$7.38, and in 1919, $6.97. That is, 
between 1914 and 1918, and 1918 and 
1919, the amounts decreased by 0.9 
and 5.6 per cent., respectively. Dur- 

* The methods by which the amounts axe 
computed is described on page 4. 



ing these years, both sales and wages 
and salaries were increasing. When 
the amounts of wages and salaries 
paid are expressed in terms of sales, 
the decreases mean that from year to 
year the increase was greater in sales 
than in wages and salaries. 

The amounts of wages and salaries 
paid by stores to salesmen in each of 
the different years may also be ex- 
pressed in terms of $1,000 sold per 
person. This is done in Table 154. 
The reason for expressing the amounts 
in this form may be stated as follows : 
The total net sales, the amounts of 
wages and salaries, the number of 
salesmen, and the average amounts of 
goods sold per salesman, all vary from 
store to store. In order to take ac- 
count in a single measure, of these 
different conditions, and to reduce 
them to a unit basis, use is made of 
this complex unit.f 

The amounts for the combined and 
the respective years are $0.45, $0.66, 
$0.47, and $0.34. That is, between 
1914 and 1918, and 1918 and 1919, 
they decreased, the percentages of de- 
crease being larger than when wages 
and salaries are expressed in terms of 
total net sales alone. Moreover, for 
the stores in each of the years when 
they are classified by the amounts sold 
per full-time sales-person, the ex- 
penses attributable to wages and 
salaries, measured in this manner, 
decrease as sales per full-time sales- 
person increase. In the combined 
years, in the stores where salesmen 

t The method by which the whole process 
is carried out is described by formula on 
page 4, item 22. 



227 



sold less than $12,000 per year, the 
average amount of wages and salaries 
per $100 of sales for each $1,000 sold 
was $0.84. For the stores in which 
salesmen sold $32,000 and over, the 
corresponding expense was $0.13. 
How nearly these results are dupli- 
cated in the individual years may be 
seen by consulting the amounts and 
their graphic representation in Table 
154. 



In Table 155, for the combined and 
for each of the years under considera- 
tion, the same stores are classified by 
the amounts of wages and salaries 
paid per $100 of total net sales. For 
each group of stores the average 
amount of sales per full-time sales- 
person is calculated. For the com- 
bined years, salesmen sold on the 
average $16,149 worth of goods. In 
1914, 1918, and 1919 the correspond- 



TABLE 154 

AMOUNT OP WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER $1,000 OF 
SALES PER FULL-TIME SALES-PERSON, FOR 146 IDENTICAL STORES 
CLASSIFIED BY AMOUNT OF SALES PER FULL-TIME SALES- 
PERSON, 1919, 1918, AND 1914 





teomt of 
Smloi per 

Full-tUM 

Sales-person 

(ImOOO**) 


timber 

of 
Store- 
yeare 


Oaees mail Salaries per $100 of 
lotal Jlet Sales 


Vagos an'* ^^lorlcB per ^100 of Total Het Sales 
per Ol.OOO of Sales per P«jll-tlne Salco-percon 


X—xm 


( 


tor Cent. 


Anount 


Per Cent. 




) SO « 60 80 100 120 


5 20 40 £0 80 


'^'r^i' \ Aetual 
100 120 140 160 180 200 220 




Totol 


433 


?7.20 




100.0 


$0.45 




100.0 




Ojulw tl2 

tl2 to tie 

tie to t24 

|24 to tJ2 
♦J2 k o,er 


ISl 
107 

ua 

S9 

es 


7.86 
7.46 

7.69 

6.01 
4.79 




109.2 
10S.6 
106.8 
8S.S 
66.5 


0.84 
0.54 
0.40 
0.22 
0.13 




166.7 
120.0 
68.9 
48.9 
28.9 








Uwvtti 






• 






- 




i 




Tot.l 
(Xveraje ) 


146 


6.97 


96.8 


0.34 


7S.6 








tbiJer tl2 
tl2 to tie 
tie to t24 
t24 to t32 
t52 * over 


IS 

so 

61 

ei 

19 


S.84 
7.70 
8.20 
5.72 

4.92 


81.1 
106.9 
113.9 
79.4 
60.3 


0.60 
0.55 
0.44 
0.21 
0.13 


155.3 

122.2 
«7,8 
46.7 
28.9 


1919 
















Total 
Uvor.Eo) 


ue 


7.S8 


102.5 


0.47 


104.4 










oader tl2 
ti2 to tie 
tie to t24 

t24 to t3£ 
♦32 4 oT.r 


50 
42 
S7 
14 

S 


7.27 
7.81 
7.59 
6.80 
S.49 


101.0 
108.5 
102.6 
94.4 
48.5 


0.72 
0.58 
0.37 
0.25 

0.09 


160.0 
128.9 
62.2 


1918 
















^■"■^ 




i 


20.0 




tot.1 
(ATorego) 


146 


7. 45 


103.5 


0.66 


146.7 






: 




amor tl2 
ti2 to tie 
tie to t24 
♦24 to tS2 
t» k orer 


86 
S6. 

20 
4 

I 


8.51 
6.72 
6.57 

e.ie 

1.7« 


118.2 
.95.3 
77.4 

103.5 
24.4 


0.95 

0.48 
0.50 
0.50 
0.05 


211.1 
106.7 
66.7 
66.7 


19U 








■ 






U.l 



AToragtt |0.4S 



228 



ing amounts were, respectively, $11,- 
345, $15,613, and $20,437. 

When the stores paid less than $4 
in wages and salaries per $100 of 
total net sales, salesmen, on the aver- 
age, for the combined years, sold 
$17,908; when they paid $4 to $8 in 
wages and salaries for each $100 sold, 
the salesmen sold on the average 
$16,905; and when they paid $8 and 
over the sales per full-time sales- 



person averaged $14,177. As the 
amounts paid in wages and salaries 
per $100 of total net sales increase, 
the sales per full-time sales-person 
decrease. In each of the years, the 
same general tendency with minor 
exceptions holds. The details of 
Table 155 supplement those of Table 
154 and should be read in connection 
with them. 

Another way of stating the rela- 



TABLE 155 

TOTAL NET SALES, NUMBER OF SALES-PEOPLE, AND AMOUNT OF SALES PER FULL-TIME 

SALES-PERSON, FOR 146 IDENTICAL STORES CLASSIFIED BY AMOUNT 

OF WAGES AND SALARIES PER $100 OF TOTAL NET 

SALES, 1919, 1918, AND 1914 





Amount of 

V.accs & 

Salaries 

per *100 of 

Total 

.'let Salea 


Kianbep 

of 
Store- 
years 


Total 
Net Sales 


number 

of 

Sales-people 


Sales per Pull-tlao Soles-person 


Yeara 


Amount 


Per Cent. 




Graphic 
3 20 40 60 80 100 120 1^0 


'Actual 




Total 
(Average) 


438 


542,655,162 


2,641.4 


$16, 149 




100.0 






Total 


Under $4 
$4 to SS 
$8 & over 


99 
220 
119 


6,131,664 
24,360,036 
12,163,462 


342.4 

1,441.0 

858.0 


17,908 
16,905 
14,177 


110.9 
104.7 
87.8 


(Average ) 


j" 








Total 
(Average ) 


146 


19,931,753 


975.5 


20,437 


126.6 




; 


1919 


Under $4 
^ to $8 
$8 & over 


44 
68 
34 


3,818,599 
10,792,646 
5,320,508 


178.8 
500.3 
296.2 


21,357 
21,572 


132.2 
153.6 
111.2 


! 




1 mill 










Total 
(Average ) 


146 


13,981,287 


895.5 


15,613 


97.7 


1313 


Under $4 
$4 to te 
58 8: over 


35 
67 
44 


1,673,416 
7,945,465 
4, 362, 406 


116.0 
468.5 
311.2 


14, 426. 




89.3 
105.1 
86.8 
















Total 
(Average) 


146 


8,742,122 


770.6 


11, 345 


70.3 


1914 


Under |4 
$4 to $8 
|8 i over 


20 
85 
41 


659,649 
5,621,925 
2,480,548 


47.6 
472.4 
250.6 






11,901 
9,898 


^■^ 


73.7 
61.3 



Average $16,149 



229 



tions between wages and salaries paid 
to salesmen and sales is shown in 
Table 156. For stores in the com- 
bined years, the average amount of 
sales secured for each $100 of wages 
and salaries paid was $1,389. In 1914 
it was $1,343, in 1918, $1,355, and in 
1919, $1,436. That is, the average 
amount increased slightly between 
1914 and 1918 and by a larger margin 
between 1918 and 1919. 

For the combined and for the sep- 
arate years, the sales per $100 of 
wages and salaries paid, increase as 
the amounts sold per full-time sales- 
person increase. That is, the larger 
the amount of goods sold by each 
salesman in a year, the greater is the 
return in sales to the merchant for 
each $100 paid in the form of wages 
and salaries. This is only another 
way of saying that with larger sales 
per sales-person, savings can be made 
in wages and salaries measured in 
terms of total sales. The actual 
amounts of sales secured for each 
$100 paid in wages may be seen by 
consulting Table 156. 

Other methods of stating the 
amounts of wages and salaries paid 
to salesmen in each of the different 
years, for stores classified by the 
amounts of sales per full-time sales- 
person, are found in Table 157. 

For the combined years, out of 
every $100 of selling expense, $66.88 
was paid to salesmen in the form of 
wages and salaries. In 1914 the 
amount was $65.59, in 1918, $67.47, 
and in 1919, $67.05. That is, the 
amounts increased between 1914 and 
1918 and slightly decreased between 



1918 and 1919. Generally speaking, in 
each of the years when all the stores 
are considered, two thirds of the total 
selling expense is paid to salesmen 
in the form of wages and salaries. 
However, when such amounts are ex- 
pressed in terms of total selling 
expense for each $1,000 sold per full- 
time sales-person the direction of 
change from year to year is differ- 
ent.* For the combined years the 
average stated in this form is $4.14. 
For 1914 it was $5.78, for 1918, $4.32, 
and for 1919, $3.28. That is, between 
1914 and 1918, and 1918 and 1919, 
there was a decrease. This is due, of 
course, to the increased sales per full- 
time sales-person in 1918 over 1914, 
and in 1919 over 1918, as shown in 
Table 155. 

For the combined years, wages and 
salaries per $100 of selling expense 
decrease as the amounts sold per full- 
time sales-person increase. That is, 
wages and salaries are relatively 
smaller proportions of total selling 
expense in stores where salesmen sell 
large than where they sell small 
amounts per year. This general ten- 
dency also characterizes 1919 and 
1918, and 1914, if the five stores hav- 
ing average sales per full-time sales- 
person of $24,000 and over in 1914 
are ignored. In comparisons of this 
type, however, salesmen's activities 
are not reduced to a unit basis. This 
is done in the right-hand columns of 
Table 157, where w^ages and salaries 

* The occasions for expressing the amounts 
in this form are analogous to those for ex- 
pressing them in a similar form in terras of 
sales. See page 227 for a brief statement 
of this fact. 



230 



TABLE 156 

TOTAL WAGES AND SALARIES, TOTAL l^TET SALES, AND AMOUNT OF TOTAL NET SALES 

PER $100 OF WAGES AND SALARIES, FOR 146 IDENTICAL STORES 

CLASSIFIED BY AMOUNT OF SALES PER FULL-TIME 

SALES-PERSON, 1919, 1918, AND 1914 



»■ ==: 


Amount of 
Sales per 
Full-time 
Sales-person 
(m OOO's) 


Tlumber 

of 
Store- 
years 


Total TJaces 
fc Salaries 


Total 
net Sales 


, — J 

Total Bet Sales per $100 of Bages and Salaries 


Yeare 


Amount 


Per Cect. 




Graphic 1 Actual 
20 40 60 80 100 120 140 160 180 200 220 




Total 
(Average ) 


438 


$3,070,748 


$42,656,162 


£1,389 




100.0 








Under $12 
$12 to $16 
$16 to $24 
$24 to $32 


151 
107 
118 
59 
25 


596,344 
671,268 
1,267,826 
375, 119 
160,192 


7,584,218 

8,997,104 
16,487,408 
6,239,946 
5,346,486 


1,272 
1,540 
1,500 
1,665 
2,089 


91.6 
96.5' 
95.6 
119.7 
150.4 


Total 
(Average ) 


; 


: 










jsi: « over 




1 Total 


146 


1,589,275 


19,931,755 


1,456 


; 


105.4 




(Average ) 






Cnder $12 
$1£ to $16 
$16 to $£4 
$24 to $32 
$52 & over 


15 
50 
61 
£1 
19 


42,298 
1£9,664 
755,695 
270,722 
151.896 


724,711 
2,202,402 
9,186,759 
4,733,634 
5,084,267 


1,715 
1,298 
1,219 
1,749 
2,051 


123.3 
93.4 
87.8 
125.9 
146.2 


1919 




: 




^^ 












Total 
(Average ) 


146 


1,031,569 


15,981,287 


1,555 


97.6 




nnder $12 
$12 to $16 
$16 to $24 
$24 to $32 
$52 k over 


60 
42 
57 
14 
8 


174,483 

521,587 

455,786 

92,487 

7,426 


2,399,066 
4,114,748 
5,894,125 
1,560,445 
212,905 


1,375 
1,280 
1,553 
1,471 
2,867 


: 




1S18 


^^^^ 


92.2 

97.4 

106.9 

206.4 


















Total 
(Arrorage ) 


146 


650,904 


8,742,122 


1,543 






i 






Onder $12 
$12 to $16 
$16 to $24 
$24 to $32 
$52 « over 


86 
S5 

20 
4 

1 


579»563 

180,217 

76,544 

11,910 

€70 


4,460.441 

2,679,954 

1,406,546 

145,867 

49.314 


1,175 
1,487 
1,795 
1.225 
5.668 


84.6 
107.1 
129.2 


1914 


• 






; 















Average $1,539 



Pull length not shorn 



are expressed in terms of selling ex- 
pense for each $1,000 sold per full- 
time sales-person.* In the combined 
and in the individual years the 
amounts rapidly decrease as the sales- 

* The method by which this unit is com- 
puted is explained on page 4, item 24. 



men's sales increase. In the com- 
bined years when salesmen sold less 
than $12,000, the cost in wages and 
salaries measured in this manner was 
$7.49; when they sold $32,000 and 
over, it was $1.55. 

In each of the different years, for 



231 



TABLE 157 



AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER $1,000 OF SALES 

PER FULL-TIME SALES-PERSON, FOR 146 IDENTICAL STORES CLASSIFIED 

BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 

1919, 1918, AND 1914 





Aaount of 
S*loi p«r 
Pull-tuse 
Salot-permos 
(In OOO's) 


HuBbor 

of 
Stors- 
Toars 


Wages aad Salaries par tlOO of 
SalllBg Kxpenas 


Vages and Salaries par tlOO of Selling Bjcpenaa 
tl*000 of Salea per Full-tlsie Sales-parson 


per 




Jmmmt 
( 


Par Cant. 


ABOUBt 

< 


Per Gent. 




£0 40 60 80 100 180 


OrapMo 
1 80 40 60 80 100 120 140 160 180 200 


Aetoal 




total 
(Xrarags) 


438 


t69.ee 


. 


100.0 


»4.14 




100.0 










Ondsr tl2 
tl2 to $1S 
tl« to tM 

»24 to Us 
»M * OTor 


ISl 
107 

lis 

39 
8S 


TO .83 
6S.04 
68.SS 
S9.S2 
37.41 


ax>s.o 

101.7 
108.3 
89.4 
85.8 


7.49 
4.96 
3.58 
2.18 
1.S5 


180.9 
U9.8 
86.3 
52.7 
37.4 


Total 






(ATarftt^o) 








; 








i 




Total 
(Averaga) 


146 


67.05 


100.3 


3.88 


79.8 








Dndar $12 

ti2 to tie 
tie to t24 
tZ4 to t22 
$52 4 OTor 


U 
SO 
61 

ei 

19 


63.36 
76.04 
Te.S4 
67.84 
67.16 


94.8 
113.7 
108.8 
86.6 
8S.S 


6.51 
5.43 
3.84 

8.08 
1.54 


157.8 
131.8 
92.8 
60.8 
37.2 


1019 




















^^^^^^^^ ■ 






1 






Total 
(A»»rag« ) 


146 


6T.47 


100.9 


4.38 


104.3 










Dtadar tl2 
tl2 to tlS 
(18 ta t24 
t24 to t32 
t}2 k orer 


SO 

it 
37 
14 

3 


7i'.oe 

69.36 
63.01 
67.24 
62. SO 


106.8 
103.7 

97.8 
100.6 

93.5 


6.99 
6.17 
3.87 
8.46 

1.67 


168.a 
124.9 
79.0 


1913 




^^^■■■■H 
















40.3 




; 




total 
(ATarago ) 


146 


65.69 


98.1 


5.78 


139.6 




. 






DBdor tl2 
tl2 to tlS 
tie to t24 
t24 to t22 
t32 & OTar 


86 
3S 
20 

4 

1 


70.77 
60.07 
88.80 
71.68 
61.98 


108.6 
89.8 
M.9 

107.8 
98.6 


7.69 
4.28 
3.05 
2.60 

1.63 


190.& 
103.4 
73.7 
62.8 
39.4 


1914 


IIIIMBI 11 1 1^ 






: 


■MHB 






















Average t66.8 


8 




ATSrsge #4.14 





stores classified by the amount sold 
per full-time sales-person, wages and 
salaries expressed either in terms of 
selling expense alone or in terms of 
selling expense for each $1,000 sold 
per full-time sales-person, may be 
seen by consulting Table 157. The 
direction of change in the amounts is 
evident from the graphic summary. 
A brief summary of Tables 154 to 
157, inclusive, may be expressed as 



folloM^s: First, the amounts of wages 
and salaries, measured in terms of 
sales, and in terms of sales for each 
$1,000 sold per full-time sales-person, 
decreased between 1914 and 1918, 
and 1918 and 1919. Second, the 
amounts sold per full-time sales- 
person increased between 1914 
and 1918, and 1918 and 1919. 
Third, as the amounts of wages and 
salaries per $100 of total net sales 



232 



increase, sales per full-time sales- 
person decrease. Fourth, the amounts 
of total net sales secured for each 
$100 of wages and salaries paid, in- 
creased between 1914 and 1918, and 
1918 and 1919. Fifth, as the sales 
per full-time sales-person increase, 
wages and salaries in terms of sales 
alone, or combined with the amount 
sold per sales-person, decrease. Sixth, 
the amounts of wages and salaries, 
when expressed for each $100 of sell- 
ing expense, increased between 1914 
and 1918, and decreased between 
1918 and 1919. When they are 
expressed in the complex unit they 
decreased between 1914 and 1918, and 
1918 and 1919. 

B. — Yearly Amounts of Wages and 
Salaries per $100 of Total Net 
Sales and per $100 of Selling 
Expense, for Stores Classified 
by Size, 1919, 1918, and 1914. 

In the discussion of the amounts of 
wages and salaries paid to salesmen 
in stores of different size and with 
different amounts sold per full-time 
sales-person, the records of two 
groups of stores are available. For 
the year 1919 alone, as is shown in 
Table 158, 269 stores may be studied. 
Wages and salaries are measured, 
first, in terms of sales, and second, in 
terms of sales and the rapidity with 
which stock is turned in each of the 
groups. 

For the 269 stores in 1919 it cost 
in wages and salaries paid to salesmen 
for each $100 of total net sales, $6.68. 
For stores with sales under $40,000, 
the average cost was $4.19 ; for stores 



with sales of $40,000 to $80,000 it was 
$5.40 ; for stores with sales of $80,000 
to $180,000 it was $6.72; and for 
stores with sales of $180,000 and over, 
it was $7.28. That is, as the stores 
increase in size, the amounts paid in 
wages and salaries per $100 of total 
net sales increase. These increases, 
however, from store-group to store- 
group are probably better shown for 
stores in which the same amount is 
sold per full-time sales-person, but in 
which the total sales are different. 
Any one of the groups of stores in 
Table 158 may be chosen to illustrate 
this. If the stores are used in which 
the sales per full-time sales-person 
were $16,000 to $24,000 per year, the 
expense attributable to selling in the 
stores with sales under $40,000 was 
$4.42. The corresponding amount 
for those which sold $40,000 to $80,- 
000 was $4.69; for those which sold 
from $80,000 to $180,000, $6.38 ; and 
for those which sold $180,000 and 
over, $9.86. Similar differences are 
observed for the stores which had 
larger and smaller amounts sold per 
full-time sales-person. It is unneces- 
sary to set these out in detail inas- 
much as they are contained in Table 
158. 

When the amounts of wages and 
salaries paid to salesmen are ex- 
pressed in terms of $100 of total net 
sales per stock turnover, the disad- 
vantages associated with the large 
stores, however, are reduced. The 
amounts are smallest in stores which 
are largest, although for those with 
sales less than $180,000 they slightly 
increase with store size. It is worth- 



233 



TABLE 158 



AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER STOCK TURN- 
OVER, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SAIjES 
PER FLT^L-TIME SALES-PERSON, 1919 





AxruBt of 
S*l<a por 

f\jll-tlM 
S«lt»-ptr4cti 

(JO COO'.) 


■tabor 

of 
StoroB 


W.««e 


and Salarloa pM- tlOO of Total Not 


Saleg 


Ikagea and Salarloa per tlOO of Total Not 
por Stock Turnover 


Sales 


ciuiiri*< 

TCI.1 
■at tel» 

(Is ooo'tl 


Aiwunt 


rar Cant. J 


Awo\mt 


Far Cent. 


Oraphle 1 

20 40 60 PO ICO 120 140 160 


Actu&l 


Oraphlo 1 
20 40 60 60 100 120 140 160 


Actual 




Tet*l 


2e« 


te.ee 




100. 


tS.C4 




100.0 




rbdor tl2 
ti2 to tie 
tie to t2« 

$24 to tiZ 
tSZ k over 


so 
ss 

103 
44 
S6 


5.96 
7.24 
7.57 
S.69 
S.29 




B9.2 
108.4 
US. 3 
88.2 
79.2 


3.51 
3.15 
3.79 
2.46 
1.69 




115.5 
115.5 
124.7 
80.9 
62.2 


Itetol 








"■"" '^^^" 






_|M 




■■■■■" 




Total 
(Aver:ige) 


31 


4.19 


62.7 


2.79 


: 


91.8 








t'luler tlZ 
$12 to tie 
tie to $24 

t24 to tJZ 

tS2 » ovor 


« 

4 
1 
7 
* 


5.49 
4.M 
4.42 
3.24 
2.90 


82.2 
64.1 
66.2 
48.5 
43.4 


3.92 
2.38 
3.40 
1.91 
1.61 


^^^^^^^ 


128.9 
76.3 

ui.e 

62.8 

59.S 


Undar $<0 






i 




Total 
(ATora^e) 


103 


5.40 


80.8 


3.00 


98.7 








Oaitr $12 
$12 to tie 
tie to $24 
$24 to $12 
»J2 k ovor 


16 
34 

51 

15 


6.f.5 
6.^9 
4.69 
5.49 
J. 00 


99.6 
94. 2 
70.2 
82.2 
44.9 


4. 43 

3.70 

2.61 
2.61 
1.58 


145.7 
121.7 
85.9 
85.9 
52.0 


t4C to $60 






— 






i 




Total 
(Avoraco) 


92 


6.72 


100.6 


3.54 


116.4 










Unlor $12 
tl2 to $16 
$16 to t24 
t24 to tSZ 
tJ2 k o»er 


4 
IS 
SO 

u 

9 


6.14 
8.SS 
6.58 

5.74 
7.62 


91.9 
128.0 

es.s 

8S.9 
114.1 


3.25 
4.28 
S.64 

2.73 
2.72 


106.2 
140.8 
U6.4 
89.8 
89.5 


tSO to $1BC 






"^^"^ 


. 




: 


; 






I 




; 


I 




Total 
(Average) 


43 


7. 26 


109.0 


2.70 


88.8 






— 


tlfiO k oTor 


Ondor tl2 
tl2 to $16 

tie to t::4 

t24 to }52 
$32 k OTO- 


1 
i 
IS 
14 

10 


4.57 
7.JS 

9.!i6 
C.IO 
5.08 


68.4 
110.0 
147.6 

91.3 

76.0 


1.83 
2.53 

3.79 
2.35 
1.59 


60.2 
83.2 
124.7 
77. S 
52.5 
















— 



while in this connection to indicate 
the precise amounts. When all the 
stores are considered as a unit, it cost 
$3.04 in wages and salaries per $100 
of total net sales per .stock turnover. 
For the stores with sales under $40,- 
000, the amount w&s $2.79 ; for those 



with sales of $40,000 to $80,000, 
$3.00 ; for those with sales of $80,000 
to $180,000, $3.54; and for those with 
sales of $180,000 and over, $2.70. 
Using for illustration the group of 
stores in which the sales per full-time 
sales-person per year were between 



234 



$12,000 and $16,000, it cost on the 
average for all stores, $3.45. For 
those with sales under $40,000, it cost 
$2.38 ; for those with sales of $40,000 
to $80,000, $3.70 ; for those with sales 
of $80,000 to $180,000, $4.28 ; and for 
those with sales of $180,000 and over, 
$2.53. 

The relative advantage which the 
large stores have in the amounts of 
wages and salaries paid, when they 
are measured in this form as con- 
trasted to sales alone, is, of course, 
attributable to the relatively greater 
rapidity with which they turn their 
stock. The actual rates for 282 stores, 
classified by size, are shown in Table 
41. It is unnecessary to give the 
figures in this case. 

The details of Table 158 have a 
practical significance to merchants, 
which it is worth-while to mention. 
When the amounts of sales per full- 
time sales-person increase, the cost of 
operation in wages and salaries per 
$100 of total net sales decreases. This 
is true for the stores treated as a 
whole and when classified by size. 
For the group of 103 stores with sales 
of $40,000 to $80,000, it is found that 
the amount of wages and salaries per 
$100 of total net sales is $6.65 for 
those in which the salesmen sold less 
than $12,000, while it is $3.00 for the 
stores in which the salesmen sold 
$32,000 and over. Between these 
limits the amounts decrease with a 
single exception as the amounts sold 
per full-time sales-person increase. 
That is, in practical operation, the 
cost of selling, expressed in sales, may 
be decreased more than 50 per cent. 



through increasing the amounts sold 
per full-time sales-person. 

Still greater savings in expenses, 
so far as wages and salaries are con- 
cerned, may be secured by increasing 
the rate at which stock is turned. The 
same group of stores — those with 
sales of $40,000 to $80,000— may be 
used to illustrate this point. For the 
16 stores in which salesmen sold less 
than $12,000 for the year, it cost in 
wages and salaries per $100 of total 
net sales per turnover, $4.43. For 
those in which the salesmen sold be- 
tween $12,000 and $16,000, the corre- 
sponding cost was $3.70. For those 
in which the salesmen sold $32,000 
and over, it cost but $1.58. The 
regularity with which the amounts, 
measured in this form, decrease for 
the different groups of stores is not 
uniform. Over the entire range, how- 
ever, the direction of change is un- 
mistakable and points at once to the 
conclusion that the greater the sales 
per full-time sales-person the smaller 
is the expense of wages and salaries 
for each $100 of total net sales per 
turnover. 

The amounts of wages and salaries 
for these 269 stores in 1919 may also 
be expressed in terms of sales for 
each $1,000 sold per full-time sales- 
person. This is done in the part of 
Table 159 carrying this caption. For 
all stores the average amount is $0.33. 
For those with sales under $40,000, 
it is $0.25; for those with sales of 
$40,000 to $80,000, it is $0.32; for 
those with sales of $80,000 to $180,- 
000, $0.35 ; and for those with sales of 
$180,000 and over, $0.31. Within 



235 



each of the groups of stores when they 
are classified by size, the amounts 
rapidly decrease as the sales per full- 
time sales-person increase. By using 
again the 103 stores with sales of 
$40,000 to $80,000 and the unit de- 



scribed above, it is found that it cost 
the stores in which salesmen sold less 
than .*12,000, $0.66, while for those 
in which the salesmen sold $32,000 
and over, it cost $0.07. Between these 
limits, the amounts decrease as the 



TABLE 159 

AMOUNT OF WAGES AND SxVLARIES PER $100 OP TOTAL NET SALES PER $1,000 OF 

SALES PER FULL-TIME SALES-PERSON, FOR STORES CLASSIFIED BY SIZE 

AND BY .AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 



eiuiiriofl 

lot.l 


Aaount of 
Sales p«r 
Pull-tlM 
S«loB-p«rBoo 
(in 000'.) 


■uBbor 
of 


■agaa and Salarlaa par $100 of Total let 


Salea 


Uagaa and Salarlaa par $100 of Total Nat Salas 
par $1,000 of Salas par Poll-tina Salaa-paraon 


ABOunt 


Tar Caot. 


AaouDt 


Par Cent. 




(In OOO'i) 


Graphic 
20 40 €0 80 100 120 140 160 


Actual 


Graphic 
.20 40 60 80 loo 120 140 160 180 


Actual 




Total 
(Avaraga) 


269 


$6.66 




I 


100.0 


10.53 




100.0 










Quiar $12 
$12 to $16 
$16 to $24 
$24 to $32 

$32 k o»ap 


30 

se 

103 
44 
36 


5.96 
7.24 
7.57 

s.es 

5.29 


89.2 

ioe.4 

113.3 
88.2 
79.2 


O.SS 
0.51 
0.40 
0.21 
0.13 


175.8 
154.5 
121.2 
63.6 
39.4 








Uxng*) 


"■^^^■^; 








I 


— 








Total 
(ATorage) 


31 


4.19 




62.7 


o.as 


75.9 




Onflar $12 
$12 to $16 
$16 to $24 
$24 to$S2 
$32 & OTar 


9 
4 
7 
7 
4 


5.49 
4.28 
4.42 
3.24 
2.90 






82.2 
64.1 
66.2 
43.5 
43.4 


0.55 
0.29 
0.22 
0.11 

0.08 


166.7 
87.9 
66.7 
33 .S 
24.2 


tbdar $40 












Total 
(ATCracc) 


103 


5.10 






80.8 


0.32 


97.0 










Qldor $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 k OTar 


16 

34 

•31 

» 

13 


6.65 
6.29 
4.69 
5. 49 
3.00 


99.6 
94.2 
70.2 
82.2 
44.9 


0.65 
0.44 
0.05 
0.20 
0.07 


200.0'' 
133.3 
75.8 

eo.6 

21.2 


$40 to iao 






— 


- 




Total 
(A.araea) 


92 


6.72 


100.6 


0.35 


106.1 










Ooacr }12 
$12 to tl6 
$16 to $24 
$24 to JJ2 
$32ko.«- 


4 
15 
SO 
14 

a 


6.14 

a. 55 
6.ja 

S.74 
7.62 


91.9 
128.0 
95.5 
05.9 
114.1 


0.59 
0.63 
0.34 
0.31 
0.30 


17S.S 
190.S' 
103.0 

93.9 
60.9 


$ea to $100 






















^■^ 








Total 


43 


7.28 


109.0 


0.31 


93.9 




Unlar $12 
$12 to $16 
$16 to J24 
$24 to $32 
$32 k oT»r 


1 

3 
IS 
14 
10 


4.57 

7. 55 
9.06 
6.10 

s.oe 


' 




68.4 
110.0 
147.6 
91.3 
76.0 


0.44 
0.51 
0.52 
0.Q2 
0.12 


: 


13S.3 
154. S 
157.6 
66.T 
36.4 


$iao k oior 














^^ 
















Avaractt d8 


60 






Avora^ $0.33 





i>ull lonctn not atom 



236 



aDiounts sold per salesman increase. 
The nature of these decreases as well 
as the actual amounts may be ob- 
served by consulting Table 159. 

Table 160 shows the association 
between the amounts of wages and 
salaries paid per $100 of total net 
sales and the average sales per full- 
time sales-person. The total section 
supplements the detail for 146 stores 
in 1919, as shown in Table 155. The 



remaining parts show the average 
amounts sold in stores of different 
size, having different wage and salary 
expense in relation to sales. Suffi- 
cient attention has already been given 
to the amounts for the stores treated 
as a whole. The condition for a single 
group may be illustrated by choosing 
again the group of 103 stores with 
sales of $40,000 to $80,000. When 
the amount of wages and salaries per 



TABLE 160 

TOTAL NET SALES, NUMBER OF FULL-TIME SALES-PEOPLE, AND AMOUNT OF SALES FEB 

FULL-TIME SALES-PERSON, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES, 1919 





Amount of 

Wage a h 

Salaries 

per $100 of 

Total 

Het Salea 


Hiimber 

of 
8toreo 


Total 
Met Salea 


HuBber of 
PuXl-tljne 
Salea-paople 


Sales per Pull-tine Sales-person 


ClesBlfled 

Total 


Amount 


Per Cent. 


(In OOO'o) 


Oraphlc Actual 
) 20 40 eo 80 100 120 140 160 160 ZOO 




Total 
(Average) 


269 


$33,687,842 


1,666.5 


t20,215 




100.0 








Onder t4 
»4 to *8 

to i over 


77 
137 
55 


5,674,150 
19,511,844 
8,501,848 


266.5 
943.7 

4S6.3 


21,291 

20,676 
13,632 




105.3 
102.3 
92.2 


(Ayerago ) 














Total 
(Average ) 


31 


963,213 


56.8 


16,958 


83.9 








Dndar $4 

#4 to ta 

|8 8t ovor 


15 
14 

2 


467,511 

436,247 

59,459 


23.6 

27.3 

5.9 


19,810 
15,980 
10,077 


98.0 
79.1 
49.8 


ttadsr Uo 






■^— 




Total 
(Average ( 


103 


5,872,443 


353.3 


16,622 


82.2 








Under |4 
♦4 to ta 
$a tc over 


39 
49 
IS 


2,112,534 

2,875,452 

664,457 


104.8 
177.8 
70.7 


20,158 
16,172 
12,510 


99.7 
80.0 
61.9 


(40 to |eo 










Total 
(Average ) 


92 


10,640,797 


564.2 


19,214 


95.0 




: 

1 




Under (4 

»4 to »e 

$8 k over 


20 
45 
27 


2,125,457 
5,529,271 
3,186,069 


1U.5 
279.4 
173.3 


19,062 
19,790 
18,365 


94.3 
97.9 
90.9 


leo to ♦180 


: 








1 




Total 
(Average) 


43 


16,011,389 


692.2 


23, 131 


114.4 




'. 




Onder |4 

(4 to %a 

|8 fe over 


3 
29 
U 


968,648 
10,670,874 
4,371,867 


26.6 
459.2 

206.4 


36,415 
23,238 
21,182 


180.1 
115.0 
104.8 


flSO & over 













ATerags (20,215 



237 



$100 of total net sales is less than $4, 
the average amount sold per full-time 
sales-person is $20,158. When the 
amount of wages and salaries per 
$100 of total net sales is between $4 
and $8, the amount of sales per full- 
time sales-person is $16,172; and 
when the corresponding amount of 
wages and salaries is $8 and over, the 
amount of sales is $12,510. Table 160 
supplements Table 159, and should be 
considered in connection with it. 

In the discussion of the relation of 
wages and salaries to sales, Table 161 
is of interest. For the 269 stores 
which are studied, $1,496 in sales 
were secured in 1919 for each $100 
of wages and salaries paid. As the 
stores increase in size the amounts of 
sales secured for each $100 of wages 
and salaries decrease. For those with 
sales under $40,000, the average 
amount is $2,385 ; for those with sales 
of $180,000 and over, it is $1,374. 
Within each group of stores, however, 
when classified by size, the amounts 
increase as the sales per full-time 
sales-person increase. For the 16 
stores which sold between $40,000 and 
$80,000, and in which the amount sold 
per full-time sales-person was less 
than $12,000, $1,505 were secured in 
sales for each $100 of wages and 
salaries paid. For the 13 stores 
having the same amount of sales, but 
in which each salesman sold $32,000 
and over, $3,329 in sales were secured 
for each $100 of wages and salaries 
paid. Similar increases follow for 
the stores in the other size-groups, 
although in some the amounts are 
erratic and the direction of change 



uncertain, due primarily to the fe-w 
stores which are included. 

The foregoing discussion of the 
amounts of wages and salaries paid 
to salesmen per $100 of total net sales 
refers to 1919. Sales were high in 
this year, due not only to the amounts 
of goods sold, but also to prices 
realized. In view of this fact, it has 
been thought worth-while to study, 
in this connection, a group of iden- 
tical stores for the years 1914, 1918, 
and 1919. Fewer records are avail- 
able for this purpose, but those which 
can be used are probably sufficient 
to serve as a basis for generalization. 
They are certainly helpful in measur- 
ing the condition in 1919 relative to 
the earlier years. 

In Tables 162 to 165, inclusive, 146 
stores classified by size and by the 
amounts of goods sold per full-time 
sales-person in 1919, 1918, and 1914 
are studied for the purpose of deter- 
mining the amounts of wages and 
salaries, measured in different ways, 
which are paid to salesmen. The dis- 
cussion of the 269 stores for 1919 had 
to do primarily with the amounts 
paid in stores of different size and 
with different sales per full-time sales- 
person. In the discussion of Tables 
162 to 165, inclusive, chief interest 
lies in the amounts paid in the differ- 
ent years. These are fully set out in 
the tables, the units of analysis being 
the same as those used in Table 159. 
For the 146 stores under considera- 
tion, it is shown in Table 154 that the 
amounts of wages and salaries per 
$100 of total net sales and per $100 
of sales for the amount sold per full- 



238 



TABLE 161 

WAGES AND SALARIES, TOTAL NET SALES, AND AMOUNT OF TOTAL NET SALES PER 

$100 OF WAGES AND SALARIES, FOR STORES CLASSIFIED BY SIZE AND BY 

AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 



Cla3Blflefi 


Amount of 
LaXes per 
Pull-tlma 
balea-pargon 
(In ooo'a) 


Niin'oor 

of 
Stores 


Total nago3 
i Salarica 


Totil 
Not Sales 


Total Wet Sales per ClOO of Wages and Salaries 


Total 
Vat Sales 


Aao'mt 


Par Cent. 




Graphic Actual 
20 40 60 90 100 120 140 160 130 200 220 240 




Total 
CAvoracc) 


263 


$2,251,131 


$33,687,342 


$1,496 














Under $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 & over 


30 
SS 
103 
44 
36 


Ul,7a4 
356,384 
1,040,507 
455,255 
297,261 


1,375,334 
4,323,136 
13,737,725 
7,722,827 
5,428,760 


1,678 
1,381 
1,320 
1,696 
1,390 




Total 






(Average) 


; 
























Total 
(Avorage ) 


31 


40,382 


963,213 


2,385 


1S9.4 








Under $12 
$12 to $16 
lis to $2i 
$24 to $32 
$32 /• ovcr 


9 
4 

7 
7 


13,688 
5,472 

10,132 
6,838 
4,172 


243,200 

• 
127,962 

230,157 

212,103 

143,731 


1,321 
2,333 
2,260 
3,069 
3,445 




Dnder $40 












^^r^^^ 






""""""" 












Totil 


103 


316, 375 


5,872,443 


1,953 






; 






UriJer $12 
$12 to $16 
$16 to $24 
$24 to $32 
$33 /: over 


16 
34 

31 
9 
13 


S6,S13 
123,464 
84, 406 
32, 562 

20,025 


650,423 

1,961,395 

1,800,555 

693,340 

666,624 


1,505 
1,589 
2,133 
1,922 
3,329 




$<0 to Jeo 




106.2 
142.6 












222.5 








Total 
(AvorQgo) 


92 


728,502 


10,840,797 


1,488 


9«.S 








Under $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 k ovar 


4 
15 
60. 
14 

» 


24,023 
137,134 

382,801 
98,842 
85,697 


391,470 
1,604,273 
5,997,547 
1,722,331 

1,125,176 


1,629 
1,170 
1,567 
1,''43 
1,313 


loe.a 

78.2 
104.7 
116.5 


$B0 to $1S0 






^^^^""^T 




. 










Totkl 
(Avarage ) 


43 


1,165,332 


16,011,389 


1,374' 












Undor $12 
{12 to $16 
$16 to $24 
$24 to $32 
$32 flc over 


1 
S 
IS 
14 
10 


17,550 
90,314 
563,118 
316,983 
177,367 


384,295 
1,229,506 
5,709,366 
6,194,993 
3,493.229 


2,190 
1,361 
1.014 
1,639 
1,969 




$180 4 over 




91.0 
67.8 
109.6 

131.6 










^^^^^" 



Average $lt496 



239 



TABLE 162 



AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER $1,000 OP SALES 
PER FULL-TIME SALES-PERSON, FOB 1-16 IDENTICAL STORES CLASSIFIED 
BY SIZE AND BY AMOUNT OF SALES PER FULL-TIME SALES- 
PERSON, 1919, 1918, AND 1914, COMBINED 





itoount of 
Salaa por 

r\ill-tbaa 

Salo.-prr.oii 

(Id 00C%) 


Kiubor 
or 

Storo- 
jaara 


Wagaa arid Ealarlea par (100 of 
Total Ket Salea 


Wages an! Salaries per ilOO of Total Het Salea 
per tl.OOO or Salea per Pull-tljae Salei-person 


ciMiiriod 

Total 
■•t Kalo 




Per Cent. 


ASOUDt 


Per Cent. 


<U OOO'a) 


Aaovist 


Oraphle |^„^^ 
3 » 40 C-0 60 100 120 140 


20 40 60 80 100 120 140 160 180 200 220 




Total 
(A»araj«) 


4se 


(7.20 




100.0 


(O.-S 










; 






DUiar (12 
(12 to (16 
(16 to (24 
(34 to (32 
(32 k orar 


JSl 
107 

lis 
ss 


7.86 
7.46 
7.60 
6.01 
4,7» 


10S.2 
103.6 
106.8 
63.: 
66.5 


0.84 
0.54 
0.4O 
0.22 
0.13 




total 
UTara<a) 






tso.o 
n.o 
















4a.» 

».9 




9 






Total 
Unraco ) 


12S 


5.W 


83.1 


0.58 


: 


128.9 








OBdar (12 
(12 to (16 
(16 to (24 
(24 to (32 
(32 k OTar 


71 
23 

n 

10 

4 


7.40 
4.81 
4.49 
3. SO 
2.37 


102.8 
66.8 
62.4 
48.6 
X.9 


0.9S 
O.SS 
0.2< 
0.13 
0.06 


2U.1 

Tf.d 
n.* 

U.3 


CbJor (40 








Total 
Uiaraja) 


163 


6.4S 


89.6 


0.4a 


!■ 


106.7 




1 






UBdar (12 
(12 to (16 
(16 to (24 
(24 to tJ2 
(12 «. over 


63 

48 
38 

7 
7 


7.BS 
e.61 
5.U 
3.23 
2.44 


108.0 
90.* 
71.0 
72.9 
33.9 


0.7» 
0.47 
0.28 
0.19 
0.06 


1TS.6 
4C^ 

u.s 


$40 to (SO 












Total 
(*»«rac») 


108 


7.17 


99.6 


0.43 




95.6 










Uider $12 
(12 to (16 
H6'to (24 
(24 to (32 
(32 k o>or 


14 

31 
46 
12 
5 


7.30 
7.58 
6.60 
6.M 
8.21 


04.2 
10S.3 
94.4 
96.4 
114.0 


0.74 
0.5S 
0.35 
0.26 
0.23 




164.4 

122.2 
80.0 
ST .8 
Sl.l 












j 








■■^^■^"■■, 




! 




Total 
(Avaraga) 


42 


7.87 


109.3 


0.J9 


86.7 




; 




Undar (12 
(12 to (16 
(16 to (24 
(24 to (32 
(32 k o»or 


S 
E 
17 
10 

7 


».C3 
9.38 
».21 
5.95 
4.43 


137.9 
130.3 
127.9 
82.6 
61.3 


0.95 
0.70 
0.47 
0.21 
0.12 


• 


211.1 
155.6 
104.4 

4e.7 

86.T 


(1£0 t. OTcr 

















Af «T3BH^ tZSL. 



Averogft $0»4ft 



time sales-person decreased between 
1914 and 1918, and 1918 and 1919. 
Tables 162 to 165, inclusive, show that 
this condition held for each group of 
stores when classified by size. More- 
over, decreases from year to year also 
hold for each group of stores when 
the amounts are measured in terms of 



sales for each $1,000 sold per full- 
time sales-person. The direction of 
the change from year to year, there- 
fore, seems to be uniform. 

For this group of stores in each 
year, as for the 269 in 1919, the 
amounts of wages and salaries in- 
crease as the stores increase in size. 



240 



However, for each group, when the 
stores are classified by size, the 
amounts of wages and salaries per 
$100 of total net sales and per $100 
of total net sales for each $1,000 sold 
per full-time sales-person decrease as 
the amounts sold per full-time sales- 



person increase. To this general rule 
there are some exceptions. Had the 
records of even a larger number of 
stores been analyzed, some exceptions 
would have been expected. For this 
group, they are so few that they do 
not invalidate the conclusion that an 



TABLE 163 

AMOUNT OP WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER $1,000 OF SALES 

PER FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND 

BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 




Pull length not sJic 



241 



TABLE 164 



AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER $1,000 OF SALES 

PER FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND 

BY AMOUNT OP S.VLES PER FULL-TIME SALES-PERSON, 1918 





toount of 
Saloj par 
ruii-tu» 
bloi-t>cr>oo 

(ID OOO'll 




«a««a uul Salaries per $100 of Total Hat Salaa 


Bai^o end Salarloo par $100 or Total Hot Salea 
per $l»0O0 of Salos per Pull-tlna ^^alee-peraon 


TBtil 


■olMr 

of 
Storaa 


ABDODt 


Per Cent. 


Aacnmt 


Per Cent. 


lis >.X»'«) 


O"'^" 1 Actual 
) 20 40 60 80 100 120 140 leO 


OrapMc 1 . _ . 
1 Actual 

20 40 60 80 100 130 140 160 laO 




Tot.l 


14« 


$7.36 




100.0 


$0.47 




100.0 




Qbdor $12 
$12 to $18 
tl6 to $24 
•24 to $32 


60 
42 
ST 
14 
S 


7.27 
7.81 
7.39 
6.80 
3.49 




98.5 
10S.8 
lOO.l 
SZ.l 
47.3 


0.72 
0.58 
0.37 
0.25 
0.09 




1SS.2 
123.4 
18.7 
53.2 
19.1 








Utsi^^o) 












■■■" 




Total 
(*nr«g<) 


40 


6.84 


79.1 


0.49 


104.3 








OBlar $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 » oT«r 


21 

t 
9 

S 

2 


7.55 
5.17 
4.60 
3.27 
1.30 


102.3 
70.1 
C2.3 
44.3 
17.6 


0.87 
0.38 
0.24 
0.12 
0.03 


185.1 
80.9 
51.1 
25. S 
6.4 


Vattr $40 




■ 




To tail 
(Avorago) 


61 


6.57 


B9.0 


0.50 


106.4 








Und.r $12 
$12 to $16 
$16 to $24 
$24 to $32 
$52 1. o..r 


24 
CO 
16 
2 


7.44 
«.M 
5.64 
2.07 


100.6 
90.0 
76.4 
26.0 


0.70 
0.49 
0.31 
0.07 


148.9 
104.3 








$40 to {80 








j 


14.9 




lotil 
(Avonga) 


32 


7.17 


97.2 


0.42 


89.4 




: 






Cador $12 
$12 to $16 
$16 to $24 
$24 to $38 
$32 4 o,.r 


i 

U 
10 

s 

1 


6.41 

6.43 
7.55 
S.05 
4.51 


86. 9 
87.1 
103.3 
122.6 
61.1 


0.57 
0.46 
0.38 
0.34 
0.12 


121.3 

97.9 

eo.9 

72.S 

ss.s 


$fo to tiao 














— 




Total 
(A»«r«sa) 


u 


8.37 


113.4 




100.0 




i 






$ieo <• ever 


miliar $12 
$12 to $1« 
$16 to $24 
$24 to $S2 

$32 » o.«r 


4 
7 
3 


10. SO 
7.66 
6.08 


142.3 
106.5 
82.4 




176.6 
83.0 
46,9 




0.83 








0.22 


— 




; 



effective method of reducing the 
amounts of wages and salaries per 
$100 of total net sales is to increase 
the amount sold per full-time sales- 
person. 

The amounts of wages and salaries 
paid to salesmen may also be ex- 
pressed in terms of total selling ex- 
pense. This is done in detail in 



Table 166 for the 269 stores classified 
by size and by the amounts sold per 
full-time sales-person. For 146 stores, 
in 1919, as shown in Table 157, it 
cost in wages and salaries $67.05 out 
of every $100 of selling expense. For 
269 stores, as shown in Table 166, the 
corresponding cost for the same year 
was $65.67. Inasmuch as wages and 



242 



salaries become a proportionately 
smaller percentage of selling expense 
as the stores increase in size, the 
actual amounts for two groups of 
stores depend on the proportions in 



which stores of different size are in- 
cluded. The amounts in 1919 for 269 
stores of different size are shown in 
Table 166. Briefly, they are as fol- 
lows : For the stores with sales under 



TABLE 165 

AMOUNT OF WAGES AND SALARIES PER $100 OP TOTAL NET SALES PER $1,000 OF SALES 

PER FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND 

BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1914 



Claaairisd 


AfflOimt of 
Salaa par 
Pull-tixa 
Salaa-paraon 
(la OOO'a) 


of 
Storoa 


Jli.:o3 and Salarlaa 


par JlOO of Total Ba 


.„.. 


"..agaa and Salar 
par $1,000 or 3 


lea par $100 of Total Ket Salca 
alas par Pull-tlmo Salaa-peraon 


Xst Sale! 


Amount 


Par Cant. 


Amount 


Per Cant. 




3 20 40 


GrapMo 

60 80 100 120 140 


Actual 


20 40 


OT'^hlo 1 Actual 
60 30 100 120 140 160 




Total 
(ATar»g») 


146 


$7.43 




100.0 


$0.55 




100.0 




Bndar $12 
$12 to $18 
$16 to $24 
$24 to $33 
$S2 It ovar 


ae 

35 
20 

4 
1 


8.51 
6.72 
5.57 
8.17 
1.78 




U4.2 
90.2 
74.8 

100.7 
23.6 


0.95 
0.48 
0.30 
0.30 

0.05 




143.9 
72.7 


TotU. 


1 


! 


(AvsrKg*) 




■ 






45.5 












7.6 




Total 


71 


8.41 


85.0 


0.71 


107.6 




nndsr $12 
$12 to $15 
$16 to $24 
$24 to $32 
$32 i ovar 


45 
15 
3 
3 


7.5» 
4.53 
4.42 
3.69 




101.9 
60.8 

sa.3 

49.5 


1. 00 
0.33 
0.24 
0.14 




160.6 
SO.O 
36.4 
21.2 


Ondar $40 








Total 
(A»araga ) 


46 


7.53 


100.9 


0.67 


101.5 










•DBdar $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 i ovor 


31 
10 
5 

1 
1 


8.^5 

■<.94 

I'.GO 
1.7S 


110.5 
83.1 
65.0 

196.0' 
23.6 


0.85 
0.43 
0.28 
0.51 
0.05 


128.8 
72.7 
42.4 

77.3 
7.6 


t40 to $90 








^^^B 




— 


■ 




Total 
(Avsrag? ) 


22 


7.45 


100.0 


0.53 


87.9 










Undar $12 
$12 to $16 
$16 to $24 
#24 to $32 
$52 & over 


7 
6 


9.08 
7.41 
C.56 


121.9 
99.5 
74.5 


0.94 
0.54 
0.39 


142.4 
81.8 


$eo to $180 






1 


• 










; 


- 




Total 
(Averaja) 


5 


8.45 


113.6 


0.65 


100.0 










Uadar $12 
$12 to $15 
$16 to $24 
$24 to $32 
$32 £; ovar 


S 

1 
1 


9.93 
7.29 
7.53 


133.3 
97.9 
101.1 


0.95 
0.49 
0.43 


143.9 
74.2 
63.6 


$180 k over 








; 
















Averaga $7.45 

•Pull lengfr. no 


t sho»-m 






Average $0.56 





243 



$40,000, the average amount is 
$71.29; for those with sales of $40,- 
000 to $80,000, it is $71.93; for those 
with sales of $80,000 to $180,000, it is 
$66.95; and for those with sales of 
$180,000 and over, $63.07. That is, 
the amounts over the entire range of 
sizes decrease, altliough the average 
for the stores with sales of $40,000 to 
$80,000 is slightly larger than that for 
the stores with sales under $40,000. 
]\Ioreover, the amounts for stores 
having a given amount sold per full- 
time sales-person tend to decrease as 
the stores increase in size, although 
from group to group the tendency is 
somewhat irregular. 

When the stores are classified by 
size and further by the sales per full- 
time sales-person, the proportions 
which wages and salaries constitute 
of each $100 of selling expense de- 
crease as the amounts sold per full- 
time sales-person increase. This con- 
dition characterizes the 269 stores in 
1919, shown in Table 166, as it did 
the smaller number for the same year 
shown in Table 157. 

The amounts of wages and salaries 
may also be expressed per $100 of 
selling expense per stock turnover. 
This is done in the columns of Table 
166 having this caption. For the en- 
tire group of stores, irrespective of 
size, the average amount in 1919 was 
$29.80. For the stores with sales 
under $40,000, it was $47.53; for 
those with sales of $40,000 to $80,000 
it was $39.96 ; for those with sales of 
$80,000 to $180,000 it was $35.24; 
and for those with sales of $180,000 
and over, $23.36. That is, the amounts 



decrease as the stores increase in size, 
the percentages of difference being 
somewhat larger when the amounts 
are expressed in this form than when 
they are expressed in selling expense 
alone. Moreover, the amounts of 
wages and salaries per $100 of selling 
expense per turnover decrease as the 
amounts sold per full-time sales- 
person increase. This condition holds 
for the stores treated as a whole and 
when classified by size. There are a 
few exceptions to this general rule but 
these are inadequate to alter the con- 
clusion. An effective way of reducing 
wages and salaries measured in terms 
of selling expense per turnover is to 
increase the amounts sold per full- 
time sales-person. The latter, of 
course, may result from increasing 
the sales of a given force or from 
reducing the size of the selling force. 
Table 167 shows the amounts of 
wages and salaries per $100 of selling 
expense for each $1,000 sold per full- 
time sales-person. The stores in- 
cluded are the same as those in Table 
166. For all the stores, irrespective 
of size or of the amounts sold per full- 
time sales-person, the average amount 
of wages and salaries per $100 of 
selling expense for each $1,000 sold 
per full-time sales-person was $3.24. 
When the stores are classified in the 
four size-groups customarily used, the 
amounts on the whole decrease as the 
stores increase in size. For those 
with sales under $40,000 the amount 
was $4.20, for those with sales of 
$180,000 and over, $2.73. Moreover, 
when the stores are classified by the 
amounts sold per full-time sales- 



244 



TABLE 166 

AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER STOCK TURN- 
OVER, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SALES 
PER FULL-TIME SALES-PERSON, 1919 



^ — '-^ '■ — 


tooant of 
&«l«a par 
KU-tlaa 
Balea-person 
(In OOO'a) 


Imber 

of 
fitoree 


■agea and Salaries par tlOO of 
Sailing acpaasa 


■aeaa and Salarlea par »100 of Salllnc Sxpesaa. 
par StooJc tomovar 


eiualflod 

Total 
lot Bales 
(in 000'«) 


iaomt 


Par Cant. 


iaont 


tar Cant. 


OraphU 1 Astsal 
1 20 40 60 80 100 120 


Oraphlo [letaal 
20 40 60 80 100 120 140 160 ISO 200 




total 
Unrage) 


269 


169.57 




locr.o 


t29.80 
















ttadar tlS 

ti2 ts tie 

tie to t24 
t24 to tS2 
tS2 k orar 


SO 
66 

109 
' 44 

86 


61.29 
T4,5S 
69.55 
61.50 
55.56 


9y.5 

113.7 
106.1 
93.8 
81.7 


36.05 
39.49 
34.78 
2S.6S 
19.13 




Total 
(iTorago) 


















^""**'"*"^" 










64.2 




Total 
(iTeraga ) 


SI 


71.89 


108.7 


47.63 








; 






ttadar tl£ 
tl2 to tie 
tie to t24 

t24 to tae 

tS2 ii oTor 


9 

4 
7 
7 
4 


75.61 
76.62 
68.85 
76.56 
54.69 


115.3 
116.7 

105.0 
U6.S 
8J.4 


54-.01 
42.51 
52.96 
45.05 
34.18 




ObOor t40 


































i 


• 






Total 
(iTOraga ) 


lOS 


71.8S 


109.7 


39.96 














ttadar tl2 
tl2 to tie 
tie to t24 
t24 to tS2 
t3Z k OTor 


16 
S4 

SI 
9 
13 


73.52 
7S.04 
71.26 
76.43 
69.40 


112.1 
111.4 
108.7 
116.6 
90.« 


49.01 
42.96 
39.59 
36.40 

31.26 




t4a to teo 






144.^ 






1 




























Total 
(Average) 


«2 


66.95 


102.1 


3S.24 














ttadar tl2 
ti2 to tie 
tie to t24 

t24 to tS2 

tS2 k over 


4 
IS 
SO 
14 

9 


se.si 

75.72 
67.30 
64.01 
60.67 


86.2 
115.5 
102.6 
97.6 
92.5 


29.74 
37.86 
37.39 
30.48 
21.67 




teo to lieo 


1 
























: 








j 






total 
'Avarage) 


4S 


6S.07 


96.2 


23.56 






^— 






Ovtar tia 
ti£ to tie 
tie to t24 
124 to t32 
tS2 k over 


1 
S 
15 
14 

10 


SS.09 
74.75 
70.95 
59.33 
50.15 


59.6 

u*.o 

108.2 
90.5 
76.5 


15.64 

25.77 
27.28 
22.82 
15.67 


S2.5 


tlfiO k oTor 


1 








i 








1^^ 






! 


52.6 



ATeraga #66*67 



ATQraga |29.&0 



person, the wages and salaries per 
$100 of selling expense for each $1,000 
sold per full-time sales-person de- 
crease as the salesmen's activities in- 
crease. This is to be expected in view 
of the method by which the stores are 



classified. The only virtue of ex- 
pressing the amounts in this form is 
to place them on a uniform or $1,000 
basis. By doing this, the different 
store-groups become directly com- 
parable. 



245 



The meaning of Table 167 may be 
made clearer if the amounts of wages 
and salaries for a single group of 
stores are studied. For stores having 
sales of $40,000 to $80,000, it cost 
$7.31 in wages and salaries per $100 



of selling expense for each $1,000 sold 
per person when a salesman sold less 
than $12,000 per year. It cost but 
$1.40 in wages and salaries similarly 
measured when salesmen sold $32,000 
and over. Prudence and business 



TABLE 167 

AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER $1,000 OF 

SALES PER FULL-TIME SALES-PERSON, FOR STORES CLASSIFIED BY SIZE AND 

BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 





«ao<mt or 
S«lM [>«r 

r<ai-tia> 

t^lai-parxm 
(in 000'.) 


Imbar 

of 
Etoraa 


>a«a« and Salarlaa par tUM of 
Sailing Kzpanaa 


Wagea and SalArlaa par tlOO of Salllag Kxpanaa 
par tl,000 or Salea par Pull-tlna Salaa-paraoo 


eiuiinat 

■•t (•!•* 

do ooo'a) 


iKunt 


far Cane. 




taanmt 


far Cant. 


Qraphlo 1 
20 to SO 80 100 120 


kotual 


5 20 40 60 


(k^phla 1 Aetaal 

80 100 120 140 laO 190 200 




(Av*r«g») 


set 


tes.ST 




100.0 


t3.e4 




100.0 




i 






Otadar tl2 
tlS to tU 

tie to t2« 

t24 to t32 
tS k onr 


SO 

*a 

lOS 
M 

sa 


ai.M 

74.S3 
M.3S 
01.90 

93.se 


•9.S 

113.7 

io«a 

»3.» 

ei-.T 


6.01 
B.28 
3.6S 
3.M 
1.30 


ias.6 
les.o 

lU.V 

eo.x 

40.1 


fct»l 






Unr«e«) 








: 


— "■ 


5 
r 








Total 
U.OTMOl 


a 


71.29 


ioa.7 


4.20 


12sr.6 










Ikdor tU 
tl2 to tie 
tie to t2t 

t24 to t» 

taa k oTor 


» 
« 

7 
7 
4 


78.61 
7e.S2 
68.93 
76.6S 
94.69 


us .9 
116.7 
103 .0 

iis.a 

S3.4 


7.SS 
S.26 
3.47 
8.67 
1.56 


233.0* 
162.8 
107.x 


Qldw t40 






















^— 


4e.i 




Tot*l 
UT>r«e>) 


109 


71. »3 


109.7 


4.33 


133.6 






: 




Ondor tU 

tie to tie 

tie to t24 
t24 to t32 
tSI k onr 


16 
94 
91 
• 
13 


73.sa 

73.04 
71.26 
76.49 
S8.4« 


112.1 
1U.4 

ioa.7 
us.e 

90.6 


7.31 
S.06 
S.77 
S.83 
1'.40 


2=5.6* 
1^6.9 

ue.4 

67.3 
43.2 


t«o to leo 








; ' 






! 








— - 




1 




total 
(AToroga) 


ra 


ee.es 


102.1 


3.48 


107.4 




i 






Cbdar tU 
tu to tie 
tie t* t24 

t24 to %iZ 

t32 k o>ar 


4 
IS 

eo 

14 

S 


ee.si 

79.71 
67.30 
64.01 
60.67 


86.2 

US.S 

lee.e 

97.6 
92.8 


8.44 
8.60 
8.S4 
Z.3S 

1.87 


1S7.8 
177.8 
109.3 
TC.S 

«e.s 


ta« to tuo 
















■■^^"^ 








i 




Total 

U»or•^a) 

Omar tl2 

ti2 to tie 
tie to |2« 

t«4 to t32 
•32ko.ar 


43 


63.07 

3».09 
74.73 
70.93 
59.33 
SO. IS 


96.9 


«.73 


84.3 




— 






1 
3 
IS 
14 
U> 


69.6 
U4.0 

ioe.2 

90.5 

76.5 


3.74 
£.20 
3.71 
2.15 
1.19 


115.4 
160.8 
U4.S 
86.4 
S6.T 


•IM k oTor 








' 






— 


■ — 


' 



kfW^ |«6«ft7 



ATar*e» |3*34 



Full longtb not ftbom 



246 



sense immediately suggest the desir- 
ability of stimulating sales as a 
method of reducing the percentage 
of selling expense reflected in wages 
and salaries. 



The data in Table 167, however, 
refer alone to the year 1919. In many 
particulars this is an exceptional year, 
and it has been thought of interest to 
include data similarly classified for 



TABLE 168 

AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER $1,000 OF SALES 

PER FULL-TIME SALES-PERSON, FOR 146 IDENTICAL STORES CLASSIFIED BY 

SIZE AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 

1919, 1918, AND 1914, COMBINED 





Anoent of 
8«lee per 
Ml-tlie 
s*aeE-p«rB0D 
(in 000' •) 


Softer 

of 
Store. 
Teare 


Wages and Sslerleo per tlOO of 
Selling Expense 


nagee and Salaries per (100 of Selling Ejqwnee per 
(1.000 of Salee per FDll-tlne Salee-person 


Total 
Xet Sklea 
<ia 000"«) 


ABOimt 


Fer Cent. 


AaoUEt 


Per Cent. 


Qraphlo | Actual 
} 20 40 60 80 100 120 


Qraphlc 1 Actual 
) 20 40 60 80 100 120 140 160 180 200 




totlO. 
(Average ) 


456 


(66.88 




100.0 


(4.14 




100.0 










OwlM- (12 
(12 to (16 
(16 to (24 

(24 to (S2 
(52 4 over 


Ul 
107 

ue 
s» 

25 


70.25 

68.04 
£8.55 
58.82 
57. il 


lOS.O 
101.7 
102.5 
89.4 

85.8 


7.49 
4.96 
5.58 
2.1B 
1.55 


180.9 
119.8 
66.5 
52.7 
37.4 








UTorBge) 










■HHi 








i 




Total 
(Average) 


125 


69.85 

72.88 
69.70 
65.94 
56.SS 
47.12 


104.4 


6.72 


162.5 










ttoder (12 
(12 to (16 
(16 to (24 
(24 to (S2 

(Sa k orer 


71 
25 
17 
10 

4 


109.0 
104.2 
96.6 
84.5 
70.5 


9.58 
5.09 
5.56 
2.05 
1.27 


226.0" 
122.9 
81.2 
49.5 
50.7 


Older (40 














^^^ i 








Totil 
(Average) 


165 


70.15 


104.9 


5.24 


126.6 










Onder (12 
(12 to (16 
(16 to (24 
(24 to (S2 
(52 k over 


65 
4S 

se 

7 
7 


72.53 
68.95 
67.07 
73.48 
60.63 


ioe.4 

105.1 
100.3 
109.9 
BO. 7 


7.25 
4.99 
5.66 
2.68 
1.45 


175.1 
120.5 
88.4 
64.7 
34.5 


















— 












Total 
(Average ) 


loe 


66.96 


100.1 


4.05 


97.8 










DndM- (12 
(12 to (16 
(16 to (24 
(24 to (52 
(52 k over 


14 
51 
46 
12 
S 


64.44 

68.16 
66.26 
67.49 
72.16 


96.4 

101.9 
99.1 
100.9 
107.9 


6.55 
4.91 
5.49 
2.55 
1.99 


153.4 

iie.6 

64.3 
61.1 
46.1 


(80 to (IBO 














..i^ 








i 




Total 
(Average) 


4£ 


86.08 


97.5 


3.21 


77.5 




! 




man* (12 
(12 to (16 
(16 to (:4 


5 
5 
17 
10 

7 


67.52 
66.84 
70.18 
E6.4Cr 
52.49 


100.7 

ee.9 

104.0 
64.3 
78.6 


€.43 
4.98 
3.59 
£.03 
1.44 


155.3 

120.3 
86.7 


(180 * over 








^^^ 






«.. . . - 




34.8 






1 



Average (66.8B 



Average (4.14 



Pull length not eboan 



247 



TABLE 169 

AMOUNT OF WAGES AND SALARIES PER $100 OF SELLIN® EXPENSE PER $1,000 OF SALES 

PER FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND 

BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 



Cluiiri*< 
tat*i 

(In OOO'l) 



teo to tiso 



Pull-tlB* 

SAl«s-p«ria 
tin nnn'al 



Qidor (12 
|12 to tl6 
tie to t24 
t2< to |32 
$S2 k ovor 



DBd*r (12 
(12 to (IS 
(16 to (2« 
(24 to (S2 
(32 k OTor 



Qnder (12 
(12 to (16 
(16 to (24 
(24 to (32 
(32 k ovor 



Ondor (12 
(12 to (16 
(16 to (24 
(24 to (32 
(32 k over 



Ondor (12 
(12 to (1« 

(16 to (24 
(24 to (32 
(32 k OTOr 



Or.phlo I J^Jtu.l 

20 40 60 80 100 120 



63.33 
76.04 
72.34 
57.24 
67.16 



66.32 

73.33 
75.23 
63.55 
79.68 
47.13 



71.97 



75.15 
72.82 
71.31 
71.61 
60.49 



£8.20 
78.15 



63.64 
73.37 



75.19 

es.32 

52.49 




100.0 



94.5 

113.4 
107.9 
85.4 
85.2 



99.2 



109.7 
112.2 
94.8 

lie .a 

70.3 



107.3 



112.1 
108.5 
106.4 
106.8 
90.2 



For Cont. 
20 40 60 80 100 120 140 160 ISO 200. 



(3.23 



6.51 
5.43 
3.84 
2.08 
1.54 



103.3 



42.1 

U6.6 

loi.a 

94.9 
109.4 



Avorago (67.05 



3.20 
2.99 
1.35 



4.41 



7.83 
S.14 
3. S3 
2.67 
1.40 



3.79 



2.82 
£.63 
3.67 
2.39 
2.02 




ATorago (3.28 



100.0 



198. » 
16S.S 
U7.1 
63.4 
47.0 

123.7 

228.0* 
171.3 
97.8 
91.2 
41.2 



134.5 



258.7' 
156.7 
U6.8 
81.4 
42.7 

115,2 

S6.0 
171.6 
1U.9 
72.9 
61.6 



120.4 

60.7 
43.9 



Fall length not ahovn 



146 stores for the years 1919, 1918, 
and 1914, individually and combined. 
This is done in Tables 168 to 171, 
inclusive. 

The data in Table 168, for the three 
years combined, show the same ten- 



dencies found in Table 167 ; i. e., for 
the proportions of selling expense at- 
tributable to wages and salaries, 
measured in either the simple or the 
complex unit, to decrease as sales per 
full-time sales-person increase and 



248 



also as the size of the stores increases. 
These relations hold in a general way 
for each of the years. When the de- 
tail for the separate years are com- 
pared, for stores of a given size and 
with a given amount of sales per full- 
time sales-person, the amounts of 



wages and salaries per $100 of selling 
expense for a $1,000 of sales per full- 
time sales-person tend, in a general 
way, to decrease from year to year. 

Tables 158 to 171, inclusive, and 
the discussion concerning them, may 
be summarized as follows; First, for 



TABLE 170 

AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER $1,000 OF SALES 

PER FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND 

BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1918 



Cleillflad 

Totia 
Mat Slat 


taount of 
Salsi psr 
TuH-tlno 
Salss.perBon 
(In OOO'l) 


Kusibar 

of 
Storaa 


Wagaa aod Salarlea par $100 
Balling KcpanBa 


of 


ffagea and Salaries per $100 of Sailing Exponsa 
par $1,000 of Saloa par Full-time Ealea-paraon 


Aaount 


Per Cent. 


Ano\mt 


far Cent. 


(In ooo's) 


Oraphle 1 Aetu&l 
20 40 60 SO 100 l»f 


ari^hlo 
20 40 60 80 100 120 140 160 130 200 220 


Aotual 




Total 
Unngt) 


146 


$87.47 




100.0 


$4.32 
















Uadtr (12 
«12 t« tie 

tlS to (S4 
}Z4 to %iZ 
$32 k onr 


SO 
42 
37 
14 

3 


71.00 
69.SS 
6S.01 
67.24 
62.50 




10S.2 
102.8 
96.4 
99.7 
92.6 


6.99 
S.17 
3.27 
2.43 
1.67 




Total 
(Averago ) 




^Hi^^^HHl 












; 


7S.7 




' ; 


36.9 






38.7 




Total 
(ATarage ) 


40 


70.83 




105.0 


5.96 








""^^ 






Oular tl2 

$12 to lie 

(16 to (24 

$24 to $32 
$S2 k onr 


21 
T 
5 
S 

2 


76.27 
72.09 
61.09 
S0.53 
47.10 




113.0 
106.8 
90.S 
74.9 
69.8 


8.75 
5.35 
3.24 
1.79 
1.18 




Vaiar (40 












— 








41.4 

27.S 




Total 
(AToraga ) 


61 


70.23 


104.1 


5.33 














ttular $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 1 oTar 


24 
20 
IS 

S 


71.03 
69.71 
69.99 
S9.61 


lOS'.S 
103.3 
10?.7 
88.4 




155.1 


t*o to iao 


i 


S.14 
















2.10 


^^ 






i 






Total 
(ATarago) 


32 


65. 4S 


97.0 








I 




; 






Undar $12 
$12 to $16 
$ie to $24 
$24 to $32 
$32 t ovar 


S 
U 
10 

S 

1 


64.06 
62.92 
65.20 
70.88 
6S.40 


94.9 
93.3 
96.6 
105.1 
96.9 




132.2 

ios.a 


tso to tieo 


; 


5.71 






: 


3.25 
2.64 
1.80 


: { 






















Total 
(Avaraga) 


13 


66.88 


99.1 




86.5 










(leo & ov«r 


DBdar $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 t over 


4 
7 
8 


72.92 
64.26 
65.31 


108.1 
95.2 
96.8 


- 




132.9 




: 


3.18 
2.37 


— \ 















Avorage ^.52 



249 



stores of a given size, the amounts of 
■wages and salaries, measured in any 
of the units, decrease as the sales per 
full-time sales-person increase. Sec- 
ond, for stores with a given amount 
of sales per full-time sales-person, the 
amounts of wages and salaries per 
$100 of total net sales and per $100 
of total net sales per stock turnover 
increase, while per $100 of total net 
sales per $1,000 of sales per full-time 
sales-person, they decrease as stores 
increase in size. Third, for stores 
with a given amount of sales per full- 
time sales-person, the proportions of 
selling expense chargeable to wages 
and salaries, measured either in the 
simple or in the complex units, de- 
crease as the size of the stores in- 
creases. 

C. — Yearly Amaiinis of Wages and 
Salaries per $100 of Total Net 
Sales and per $100 of Selling Ex- 
pense , for Stores Classified by 
Size and by Size of City in 
Which Located* 1919. 

The discussion of wages and sal- 
aries in relation to sales in Volume 
lit of the Bureau's study of Costs, 
Merchandisimj Practices, Advertising 
and Sales in the Retail Distribution 
of Clothing showed that the entire 
wage bill in terms of sales was rela- 
tively lower for stores in small than 
for those in large cities. In the fol- 
lowing section the effect of location 
on wages and salaries paid to sales- 
men is studied for a group of stores, 
having in 1919 sales between $40,000 

• Population figures are for 1920. 
•|- Pages 146 to 156, inclusive. 



and $80,000 and located in different 
sized cities. This part of the discus- 
sion closely follows that on pages 
112 to 118. 

In Table 172, 103 stores with an- 
nual sales of $40,000 to $80,000 are 
classified according to location and 
the amounts sold per full-time sales- 
person. The average amount of 
wages and salaries per $100 of total 
net sales for the 89 stores in the small 
cities in 1919 was $5.34; for the 14 
stores located in the large cities it was 
$5.76. That is, it cost on the average 
$0.42 more to sell $100 worth of goods 
for the stores in the large than for 
stores of similar size in the small 
cities. This advantage, however, does 
not always hold for the stores with 
different location, but having the same 
amount sold per full-time sales-per- 
son. To test satisfactorily this latter 
condition would require more store 
records for stores in the large cities 
than are available. Within each city- 
group, however, the amounts of 
wages and salaries per $100 of total 
net sales decrease, with minor excep- 
tions, as the amounts sold per full- 
time sales-person increase, the con- 
tinuity of the decrease being un- 
broken for the stores in the small 
cities and interrupted, in 'spite of the 
few stores considered, at only two 
places for the stores in the large 
cities. 

Table 172 also supplies the data 
for a more refined analysis of the 
amounts of wages and salaries. In 
the right-hand columns of the table, 
the amounts per $100 of total net 
sales per stock turnover are shown 



250 



TABLE 171 



AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER $1,000 OF SALES 

PER FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND 

BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1914 





Anount of 
S&lee per 
Pull-tU«» 
Salee-pereon 
(In OOO't) 


Hunber 

of 
Stores 


Vagea and Ealarlee per (lOO of 
Selling Expense 


Wages and Salarloe 
per (l.OCO of Sales 


per $100 of Selling Expense 
per Pull-tlBo Salee-person 


total 
Ret ealo* 


Awimt 


Per Cent. 




Anount 


fer Cent. 


(IB OOO'l) 


Qr^fihie 
) 20 40 60 80 100 120 


Astnal 


> 20 40 60 


80 100 120 140 160 180 




Total 
(Average) 


146 


(65.59 




100.0 


(5.7B 
















Dnder (12 
(12 to (16 
(16 to (24 
(24 to (S2 
(SS » over 


Be 

3S 

20 

4 
1 


70.77 
60.07 
66.80 
71'. 68 
61.62 


107.9 
91.6 
86.6 

109.5 
94.4 


7.69 
4.28 
5.05 
2.60 
1.65 




Total 
(Avera^) 









• 






; 








28.2 








Total 
(Average) 


71 


69.82 


106.4 


7.76 


154.5 










D&der (12 
(12 to (16 
(16 to (24 
(24 to (i2 
(S2 k over 


45 
IS 
8 
9 


71.82 
6^.89 
66.88 
54.68 


108.6 
103.5 
102.0 

es.4 


».91 

4.91 
5.60 
2.05 


171.6 
64.9 
62. S 
35. 1 


Oidsr (40 










— 




: 




Total 
(Average) 


48 


68.63 


104.6 


5.44 


94.1 










Dader (12 
(12 to (16 
(16 to (24 
(24 to (S2 
(32 k over 


SI 

10 
E 

I 
1 


7S.09 
62.07 
48.73 

eo.8o. 

61.92 


111.4 
94.6 
74.5 

123.2 
94.4 


7.57 
4.52 

2.77 
2.83 
1.63 


151.0 
78.2 
47.9 
49.0 
28.2 


(40 to (60 





















Total 
(Average ) 


22 


64.05 


97.6 


4.96 














Onaor (12 
(12 to (16 
(16 to (24 
(24 to (32 

(33 & over 


7 
9 
6 


69.73 
61.90 

68.03 


106.5 
94.4 

88.5 


7.19 
4.66 
5.02 


124.4 
78.7 
52.2 


(80 to (180 
















Total 
(Average) 


6 


60.77 


92'.7 


4.75 


81.8 










tkder (12 
(12 to (IE 
(16 to (24 
(24 to (32 
(se k ever 


S 
1 
1 


67.32 
64.67 
57.42 


102.6 
83.4 
87.5 


6.43 

3.64 
3.20 


111.2 
63.0 
55.4 


$130 * OT»p 




— 


i 








t 



Average (65. £9 



Avurugtt (S»7S 



for stores with annual sales from 
$40,000 to $80,000 and with different 
amounts sold per full-time sales- 
person. When the amounts are ex- 
pressed on a per turn basis, and when 
the stores are considered as a group, 



those in the large cities spend less 
than do those in the small cities. 
When they are classified by the 
amounts sold per full-time sales- 
person, however, this advantage does 
not hold in each individual instance, 



251 



TABLE 172 

AMOUNT OP WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER STOCK TURN- 
OVER, FOR STORES WHTH SALES OF $40,000 TO $80,000, CLASSIFIED BY SIZE 
OF CITY AND BY AMOUNT OP SALES PER FULL-TIME SALES-PERSON, 1919 



Aaount of 
£«les per 
PuU-tlJio 
SAlo>-perso: 



Wagaa ajid Ssl&rtoa par $iOO of Total Hat Salaa 



20 40 60 80 100 120 140 ICO 



Vagea and Salaries par $100 of Total Rat Salea 
par :>tock Turnover 



20 40 60 80 100 120 140 160 

__ , ; 1 , ^. 



Total 
(Ageraiga) 



Dndar $12 
tl2 to tie 
}16 to t24 
t24 to $32 
$32 It over 



6.65 
6.29 
4.69 

S.49 
3.00 



S.St 



Dtadar $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 A over 



6.92 

6.31 
4.79 

4.oa 

2.9S 



5.7S 



Ondar $12 
$12 to $16 

$16 to $24 
$24 to $32 
$32 & over 



4.57 
6.24 
3.63 
e.03 
S.M 



100.0 



53.00 



123.1 

116.5 
86.9 

101.7 
55.5 



4.43 

3.70 
2.61 
2.61 
1.58 



96.9 



3.14 



128.1 
116.9 
88. S 
75.6 
54.1 



4.61 
3.71 
2.81 
2.27 



106.7 



2.74 



84.6 
US. 6 

67.2 
1*8,7 

65.9 



2.86 
3.12 
I.IO 
3.21 
2.23 



4vara^ $5.40 



Avarago $3.00 



100.0 



147.7 
123.3 

87.0 
87 .0 
52.7 



104,7 



153.7 
123.7 
93.7 
75. 7 
48.7 



91.3 



95.3 
104.0 

36.7 
107.0 

74.3 



the number of stores being too few 
to reveal characteristic amounts. 
Within each city-group, however, the 
amounts of wages and salaries, when 
measured in a unit of sales per stock 
turnover, decrease as the amounts 
sold per full-time sales-person in- 
crease. Generally speaking, the 
greater rapidity of turnover for the 
stores in the large cities more than 
compensates for the disadvantage 
under which they operate so far as 
pajTnents for wages and salaries in 
relation to sales are concerned. 

It will be remembered that stores 
of not widely different size are in- 



volved in this comparison. The prac- 
tical significance of the conclusions 
seems to be that merchants, doing a 
given amount of business, have lower 
amounts of wages and salaries in 
terms of sales in the small than in the 
large cities, but that they have higher 
expenses of the same type when 
measured in terms of sales per turn- 
over. 

Table 173 is similar to Table 172. 
The same stores are included and the 
method of grouping them is identical. 
The only additional feature of Table 
173 is that expenses attributable to 
wages and salaries are expressed in 



252 



terms of sales for each $1,000 sold per 
full-time sales-person. When the 
amounts are shown in this form, the 
stores in the small cities, when treated 
as a whole, retain their advantage. 
When those having the same amounts 
of sales per full-time sales-person, but 
differently located, are compared, two 
of the groups in the small cities have 
smaller amounts than those in the 
large cities, and three have larger 
amounts. 

The effect of location and amounts 
of goods sold per full-time sales-per- 
son on wages and salaries may also 
be measured by expressing wages and 
salaries in terms, first, of selling ex- 



pense ; and, second, of selling expense 
per stock turnover. This is done in 
Table 174 by using the same stores as 
those studied in Tables 172 and 173. 
Out of every $100 of selling expense, 
wages and salaries constitute $72.69 
for the stores in the small cities and 
$68.09 for the stores in the large 
cities. Moreover, with the exception 
of one case, the amounts stand in this 
order for stores with different loca- 
tions, but with equal amounts sold 
per full-time sales-person. Within 
each city-group there is little or no 
tendency for the amounts to increase 
or decrease as the amounts sold per 
full-time sales-person increase. When, 



TABLE 173 

AMOUNT OF VT'AGES AND SALARIES PER $100 OP TOTAL NET SALES PER $1,000 OF SALES 

PER FULL-TIME SALES-PERSON, FOR STORES WITH SALES OF $40,000 TO 

$80,000, CLASSIFIED BY SIZE OF CITY AND BY AMOUNT OF 

SALES PER FULL-TIME SALES-PERSON, 1919 



31 •• 


Amount of 
S>les par 

Piai-tiHB 

Sftlea-peraon 
(In OOO'a) 


irvonbor 

of 
Storaa 


nagaa and Salarloa p«r $100 of Total Ket Salea 


Wa««a and Salarloa 
par $1,000 or Sale 


par $100 of total Hat BalM 
a par Pull-tljra Salaa-pareoft 




of 

Clt, 

(In OOO'a) 


Aaount 


far Cant. 




laomt 


For Cent. 


Orapblo 
20 40 60 80 100 120 140 160 


Aetuaa 


> 20 40 60 eo 


Oraphlc 
100 120 140 160 180 2O0 220 


Actual 




Total 
(i»er>eo) 


103 


$5.40 




100.0 


$0.32 




100.0 










VDia $12 
$12 to $16 
$16 to $24 
$24 to $S2 
$32 4 o«r 


16 
54 

31 
» 


e.es 

6.29 
4.69 

S.49 
3.0O 


123.1 
116.9 

86.9 
101.7 

55. 6 


0.6« 
0.44 
0.25 
0.20 
0.07 


206.3 
1S7.S 
78.1 
62.5 
21.9 








CATOr&go ) 












^^^^ 




Total 
(Averneo) 


89 


5.34 


98.9 


0.32 


100.0 




i 






Undsr $12 
$12 to $16 
$16 to $S4 
$24 to $S2 
$32 i onr 


14 
29 

29 
6 
U 


6.92 
6.31 
4.7a 
4.08 
2.92 


128.1 
U6.9 
88.5 
75.6 
54.x 


0.68 
0.44 
0.26 
0.15 
0.07 


212.5 

137.5 
81.3 
46.9 
21.9 


Onoor 


^" 




40 


'^"^^^^T" 


^- 




— i 




Total 
(Averaga ) 


14 


S.76 


10S.7 


0.33 


103.1 










Under $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 k over 


2 
6 
2 
S 
2 


4. 57 
6.24 
3.63 
8.02 
S.56 


e«.6 

115.6 
67.2 

148.7 
65.9 


0.48 
0.42 
0.17 

. 0.50 

o.oe 


150.0 
131.3 
53.1 
93.8 
25.0 










— 


■ 1 






— 



253 



TABLE 174 



AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER STOCK TURN- 
OVER, FOR STORES WITH SALES FROM $40,000 TO $80,000, CLASSIFIED BY SIZE 
OF CTTY AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 




Averes" ^^SS 



Average tSS.DS 



however, the amounts of wages and 
salaries per $100 of selling expense 
are shown per stock turnover, rather 
different conditions follow. The aver- 
age amount expressed in this form for 
the stores in the small cities is $42,76. 
For those in the large cities it is 
$32.42. Moreover, in each group of 
stores, classified by the amounts of 
sales per full-time sales-person, the 
amounts are larger with one excep- 
tion for the stores in the small than 
for those in the large cities. In addi- 
tion, the differences between the 



amounts in the large cities and those 
in the small cities are more marked 
when amounts of wages and salaries 
are expressed in terms of selling ex- 
pense per stock turnover, than when 
shown in terms of selling expense 
alone. 

Within each city-group, the 
amounts of wages and salaries per 
$100 of selling expense per stock turn- 
over decrease as the amounts per full- 
time sales-person increase. For the 
stores in the small cities there is no 
exception to this rule and for those 



254 



in the large cities, even with the few 
stores considered, only two exceptions. 
The possibilities of reducing wages 
and salaries as a part of selling ex- 
pense for each stock turnover by 
stimulating sales may be shown con- 
cretely if the group of 89 stores 
located in small cities is used for 
illustrative purposes. For the stores 
in which salesmen sold less than $12,- 
000, the amount of wages and salaries 
per $100 of selling expense for each 
stock turnover was $49.04, while for 
the stores in which salesmen sold $32,- 
000 and over the corresponding 



amount was $29.92. Between these 
limits, as amounts sold per full-time 
sales-person increase, a saving is 
shown for each group of stores. Sim- 
ilar, but less certain advantages 
through stimulating sales may also 
be observed by considering the stores 
in the large cities. 

Still another method of stating the 
amounts of wages and salaries for 
stores classified by location and by 
amounts sold per full-time sales-per- 
son may be used to advantage. In 
Table 175 the amounts of wages and 
salaries per $100 of selling expense 



TABLE 175 

AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER $1,000 OF SALES 

PER PULL-TIME SALES-PERSON, FOR STORES WITH SALES FROM $40,000 

TO $80,000, CLASSIFIED BY SIZE OF CITY AND AMOUNT OF 

SALES PER FULL-TIME SALES-PERSON, 1919 





Imount of 
Sales per 

P\iU-tlJM 

Salae-poraon 
(la OOO's) 


Nnmbar 
of 

Stoma 


Wa^a and Salarlaa per $100 of 
Selling Sxpenae 


Itagea and Salaries per $100 of Salllog Szpsnss per 
$1,000 of Sales par Pull-tljiia Saloa-parsoa 


of 

city 

(In OOOS) 


/taKmat' 


Per Cent. 


Amoant 


tar Cent. 


Orapmo 1 Actual 
> 20 40 60 eo 100 12o' 


O"'*^" 1 Actual 
20 40 60 80 100 120 140 160 ISO 




Total 
(ATsraga ) 


103 


$71.03 




100.0 


$4.33 
















TIndar |12 
$12 to #16 
tlS to t34 
$24 to $32 
$32 k om 


IS 
34 
31 

9 
IS 


73.52 
73.04 
71.26 
76.43 
59,40 


102.2 
101.5 

99.1 
106.5 

82.6 


7.31 
6.03 
S.77 
2.83 
1.40 






Total 
UTorag*) 








1 








; 


— 


















Total 
(iTarags) 


ea 


72.89 


101.1 


4.42 














T)a6m $12 
$12 to $16 
$19 to $24 

$24 to $as 

$32 h 0T«r 


14 

29 
29 
« 
U 


73.56 
74.54 
73.37 
72.59 
59.83 


102.3 
103.4 
102.0 
100.9 
83.2 


7.26 
5,15 
3.92 
2.66 
1.42 






: 










: 








— 


















Total 
(Averaga ) 


14 


68.09 


94.7 


3.86 












Under $12 
$12 to $1S 
$16 to $24 
$24 to $32 

$32 & over 


S 

s 

2 
S 


73.03 

66.es 

49.97 
80.33 
97.27 


101.5 
93.0 
69.5 

ur.7 

70.6 


7.69 
4.55 
2.38 
3.03 
1.36 




iO and 


1 












55.0 






2B.1 



Averag9 $71.93 



ATora^ $4.33 



255 



for each $1,000 sold per full-time 
sales-person are shown for the stores 
classified as in Table 173. The bases 
of classification are location and 
amount sold per full-time sales-per- 
son. The amounts of wages and 
salaries in terras of selling expense 
for the stores thus classified are made 
fully comparable from group to 
group when they are put on a $1,000 
basis. The actual amounts with the 
graphic representation are shown in 
the right hand columns of Table 175. 
Stated in this form, the amounts of 
wages and salaries for stores in the 
small cities are relatively high and for 
those in the large cities relatively low. 
That is, the amounts stand in the 
same relative position as do those in 
which the unit is selling expense 
alone. Within each city-group they 
decrease rapidly as the sales per full- 
time sales-person increase, the abso- 
lute and percentage reductions in the 
small and large stores being, respec- 
tively, $5.84 or 80.4 per cent., and 
$6.43 or 83.6 per cent. 

D. — Summary. 

(1), From year to year, the 
amounts of wages and sal- 
aries, in terms of sales alone 
and of sales per $1,000 sold 
per full-time sales-person de- 
creased. This condition holds 
generally for all stores and 
also for stores classified by 
size and by amount sold per 
full-time sales-person. 

(2). From year to year, the 
amounts of wages and sal- 



aries per $100 of selling ex- 
pense per $1,000 of sales per 
full-time sales-person de- 
creased. 

(3). The amount of sales per full- 
time sales-person increased 
between 1914 and 1918, and 
1918 and 1919. 

(4), Wages and salaries in terms 
of sales, of selling expense, 
and in terms of either per 
stock turnover or per $1,000 
sold per full-time sales-per- 
son, decrease as the amounts 
of sales per full-time sales- 
person increase. This holds 
for all stores and for stores 
of a given size. 

(5). For stores with a given 
amount of sales per sales-per- 
son, the amounts of wages 
and salaries per $100 of total 
net sales and per $100 of 
total net sales per stock turn- 
over increase as the stores in- 
crease in size, while the 
amounts of wages and sal- 
aries per $1,000 sold per full- 
time sales-person decrease as 
stores increase in size. 

(6). For stores with a given 
amount of sales per full-time 
sales-person, the amounts of 
wages and salaries per $100 
of selling expense, per stock 
turnover, and per $100 of 
selling expense per $1,000 
sold per full-time sales-per- 
son decrease as the stores in- 
crease in size. 



256 



(7). The amounts of sales per full- 
time sales-person increase as 
the size of the store increases, 
and decrease as the wages and 
salaries per $100 of total net 
sales increase. 

(8). The amounts of sales for each 
$100 of wages and salaries 
decrease as the stores increase 
in size and increase as the 
amounts sold per full-time 
sales-person increase. 

(9). When stores of a given size 
are classified by size of city 
in which they are located, 
wages and salaries per $100 of 



total net sales, expressed 
either in simple or in complex 
units, decrease as the sales 
per full-time sales-person in- 
crease. 

(10). "When stores of a given size 
are classified by size of city 
in which they are located, the 
amounts of wages and sal- 
aries per $100 of selling ex- 
pense alone tend neither to 
increase nor to decrease, 
while the amounts in terms 
of both selling expense per 
stock turnover and selling 
expense for the amount sold 



TABLE 176 

AMOUNT OP WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER STOCK TURN- 
OVER, FOR STORES CLASSIFIED BY SIZE AND BY METHOD OF 
PAYING REGULAR SALESMEN, 1919 



Cluslfle« 

To til 
net E«le= 


BettKxl 

of 

C«iqwna«tloa 


Ifumber 

or 
Stores 


Bages and Salaries per JlOO of Total Set Sales 


Wages and Salarlea per (100 of Total Net Sales 
per Stock Turnover 


Ajaoxtnt 


Per Cent. 


Aaount 


Per Cent, 




Oraphle j ^^^^^ 
) 20 40 60 80 100 120 140 


Orophli: | Actual 
20 40 60 80 100 120 140 160 




Total 
(ATCrago ) 


254 


$6.17 




100.0 


*2.94 




100.0 


Total 
(Average ) 


Straight Salary 
Salary h CoraniEfilon 


lav 

57 


5.98 

6.55 




96.9 

105.8 


2.99 
2.72 














— 








Total 
(AyOTBge) 


26 


4.58 


71.0 


2.92 


99.5 






ttodcr i40 


Straight Salary 
Salary k CoiraalaBlon 


25 
5 


4.52 

5.86 


73.5 

£2.6 


3.01 
2^ 


102,4 
87.4 












Total 
jAToraee) 


97 


S.'-C 


88. S 


S.05 


103.1 




I 




»« to ^ 


Straight Salary 
Salary k CoiailssloQ 


65 
12 


5.58 
4.68 


90.4 

75.9 


5.10 
2.60 


10S.4 
88.4 














Total 
(Average ) 


89 


6.68 


108. S 


5.52 












$80 to }183 


Stna^t Salary 
Salary Jt Commission 


65 

24 


6.;2 
7.58 


102.4 
122.9 


5.16 










145.2 






■ 






Total 
(Average) 


40 


6.18 


100.2 


2.29 










$160 & oytT 


Straight Salary 
Salary k Comliclon 


24 
16 




97.6 
102.6 




• 


82.0 
69.7 




6.54 




2.0^ 





Average (2.94 



257 



TABLE i: 



AMOUNT OF WAGES AND SALARIES PER $100 OP TOTAL NET SALES PER $1,000 01 

SALES PER FULL-TIME SALES-PERSON, FOR STORES CLASSIFIED BY SIZE 

AND BY METHOD OF PAYING REGULAR SALESMEN, 1919 



ClUfiriad 


Ucthod 

or 


Mu>l>or 

of 
Storoa 


aacea an] Salaries per $100 or Total Not Salea 


Wages Qftd Salaries por JlOO of Total Met Sales 
per ;i,000 of Sales per P-.ll-tliao Saloa-porson 


Aaio'inC 


Per Cent. 


Ajno^mt 


Per Cent. 


(m ooo'ai 


<='-■*■'' 1 Act.«l 
■) 20 40 60 80 100 ICO laO 


*'"-'= 1 Actual 

m 40 so 00 100 120 140 




To tad 


364 


J6.17 




100.0 


iO.JO 














Tot.l 


SCralgnt Salarr 
Salary ti Corrilssloc 


19T 

S7 


S.98 
6.SS 


96.9 

105.8 


0.30 
0.32 




100.0 
106.7 


U.cr.. y ) 














Total 
(Aver«*:a J 


28 


4.38 


71.0 


0.25- 




83.3 






Dba*r ^0 




23 

9 


4.52 

3.86 


73.3 
62.6 


0.27 
0^15 


90.0 
50.0 


' Zmlmrj A Comlaslon 


— 


1 Total 


97 


S.4« 


88.5 


0.53 


110.0 


$40 to Sao 


(AYcrag.) 








83 
12 


9.58 
4.68 


90. a 

75.9 


0.24 
0.30 


113.3 
100.0 


iAltrj a Coauaalcm 








Total 


69 


6.e8 


108.3 


0.34 


U3.3 


tBO to $1S0 


Uwrago) 








65 
24 


6.J2 

7.58 


102.4 
122.9 


0,33 
0.37 


110.0 
123. J 


fi»l*rr k COBWllStOD 










Total 


40 


6.18 


100.2 


0.26 


86.7 


8lS0 k oTor 


(ATOrage) 


; 




24 

16 


B.02 
6.34 


97.6 
102.8 


0.23 
0.30 


76.7 
100.0 


-«-i»i6E- .»«^«r7 






J 




. 



Avaroge J6.17 



Avcrago )0.3O 



per full-time sales-person de- 
crease as the sales per full- 
time sales-person increase. 

(2) — YEARLY AMOUNTS OF WAGES 
AND SALARIES IN RELATION TO 
THE METHODS BY WHICH SALES- 
MEN ARE PAID. 

Tables 176 to 183, inclusive, are 
submitted as throwing light on tbe 
question — Are wages and salaries, 
wlien measured in terms of sales, or 
selling expense alone, or when com- 
bined with stock turnover, and sales 
per full-time sales-person, higher or 
lower in stores where straight salaries 



are used than in stores where salaries 
and a commission or a bonus are paid 
to salesmen? 

A. — YEARLY AMOUNTS OF WAGES AND 
SALARIES PER $100 OF TOTAL NET 
SALES AND PER $100 OF SELLING 
EXPENSE, FOR STORES CLASSIFIED 
BY SIZE, 1919. 

Without repeating the substance of 
the discussion on pages 118 to 127, 
which had to do with an analysis of 
total selling expense in terms of sales 
and total operating expense for stores 
paying their salesmen by different 
methods, it will suffice to summarize 



258 



the data in Tables 176 to 183, inclu- 
sive, bearing upon the amounts of 
wages and salaries paid to salesmen 
in stores which pay their salesmen 
according to the methods indicated. 

In these tables, the stores are clas- 
sified, first, by size, and second, by 
the methods of compensating regular 
salesmen, distinction being made for 
the stores using straight salaries as 
contrasted with those which use sal- 
aries and commission. 

When wages and salaries are ex- 
pressed in terms of sales, as in Tables 
176 and 177, the average amounts are 
lower for stores using straight salaries 
in five, and lower for stores using 
salaries and commission in seven of 



the groups.* When they are ex- 
pressed in terms of selling expense, 
as in Tables 178 and 179, they are 
lower for straight salaries in three 
and lower for salaries and commission 
in nine of the groups. In these group- 
ings both the simple and complex 
units are counted. When the amounts 
are expressed in terms of $100 of 
sales and $100 of selling expense, 
they are lower where straight sal- 
aries predominate in three of the 
groups and where salaries and com- 
missions are used, in five of the 
groups. When they are expressed in 
terms of sales and selling expense per 

* The low averages in the various tables 
are underlined. 



TABLE 178 

AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER STOCK TURN- 
OVER, FOR STORES CLASSIFIED BY SIZE AND BY METHOD OF 
PAYING REGULAR SALESMEN, 1919 





Method 

of 

Conpenaatlon 


of 


,.i.,.o3 or.u EalaS-los por ClOO of Selllnc iiponso 


Viagea and Solaries per ilOO of Selling Ejqjonse 
per Stock Tijrnovcr 


Total 




Per Cent. 


Ajnount 


Per Cent. 


(In OOO'o) 


. Airto>jjit 


Ciaphlo 1 

Aotual 
20 40 60 60 100 120 14ol 


Graphic 1 

Aotual 

-20 40 60 60 100 120 140 160 180 




Total 
(Average) 


254 


063.21 




100.0 


*30.10 




100.0 








Total 
(*vor«c«) 


Strnlebt Salary 
Salary t Coinnloslon 


197 
57 


84.83 
60.48 




102.7 
95.7 


32.45 
25.20 


107.0 








: 






Total 
(Averace ) 


23 


71.97 


113.9 


47.98 


159.4 








Dbder Uo 


Stral^t Salary 
Salary & CoinntSBlon 


23 
S 


77.16 
55.13 


! 


122,1 
87.2 


51.44 


170.9 
122.1 


■ 












Total 
(Average) 


97 


72.24 


114.3 


40.13 


133. S 






i 


(40 to $80 


Straight Salary 
Salary & CoimlaBlon 


85 
12 


72.92 
67.39 


115.4 
106.6 


40.51 
37.44 


134. S 
124.4 














Total 
(Average) 


89 


66.60 


105.4 


35.05 


116.4 








»80 to $180 


Stralgtt Salary 
Salary h Comnieslon 


65 
24 


66.23 
67.40 


' 104.8 
106.6 


33.12 

37.44 


'< 


UO.O 
124.4 














Total 
(Average) 


40 


57.84 


91.7 


21.46 


71.S 




: 


tlSO t orar 


Straltht Salary 
Salary & Conslselon 


24 

16 


58.91 
56.99 


93.2 
90.2 


23.56 

18.38 




78 .5 
£1.1 





Average $65.31 



259 



TABLE 179 

AMOUNT OF WAGES AND S.VLARIES PER $100 OF SELLING EXPENSE PER $1,000 OP 

SALES PER FULL-TIME S.VLES-PERSON, FOR STORES CLASSIFIED BY SIZE 

AND BY METHOD OF PAYING REGULAR SALESMEN, 1919 





Method 

of 

Coc;>«nsfttlon 


Hunger 

of 
Storef 


naees and Salaries per JlOO of 
Selling Expense 


tiaee; ana Salarioa per SlOO of Selling Eipenae 
per vl.ooo of Sales per Pull-tlna Salee-pereon 


let.l 


ABOunt 


Per Cent. 


Awnmt 


Per Cent. 


(IB OOO'c) 


Graphic 
20 40 60 80 100 120 140 


Actual 


**"• JAetual 

1 20 40 60 80 100 120 140 160 




(Averoge) 


2M 


♦ej.21 




100.0 


♦S.ll 




100.0 








Tctid 


StTAleht Sftlu*7 
SaJvT & Comlssloa 


197 
57 


64.89 
60,48 


1 


102.7 
95.7 


5.21 
2.95 


103.2 
94.9 


Unr^EP) 








; 


i 




7y>t«l 
(A.or.c) 


ZB 


71.97 


11S.9 


4.05 


130.2 




1 


: 


tkxlar i*0 


Str«lE)it S«lar7 
Salary & Congnlaslon 


6 


77.16 
65.15 


122.1 
67.2 


4.57 
2^19 


liO.e 
70.4 








: 




lyjtal 
(Averaao) 


97 


72.24 


m.j 


4.42 


142.1 








»«0 to $80 


Sti-algjit Salary 
Salary fc Cornnlaslon 


85 

12 


72.92 
t7.S8 


115.4 
106.6 


4.43 

4.M 


142.4 

139.2 








: 






Total 
(Avoraga) 


69 


66.60 


105.4 


3.43 


110,3 








480 to tiBO 


Stralcht Salary 
Salary k Cmnlealon 


&5 

24 


66.23 
67.40 


104.8 

106.6 


3.48 

3.31 


111.9 

106.4 














Total 
(Avarege) 


40 


57.94 


91.7 


' 2.45 


78.6 




: 


tUlO k over 


Stral^t Salary 
Salary It Comnlaalon 


24 
IC 


56.91 
56. S9 


95.2 
90.2 


2.23 
2.68 




71.7 
86.2 






■ 



Averoge $03-21 



turnover, they are lower in two of the 
groups where salaries alone are used 
and lower in six of the groups where 
salaries and commissions are em- 
I)loyed, When they are expressed in 
terms of sales and of selling expense 
per $1,000 sold per full-time sales- 
person, the amounts are lower in 
three groups where straight salaries 
are used, and lower in five cases 
where salaries and commissions are 
used. No account is taken of groups 
wherein the amounts are identical. 
Cumulating this evidence, it is found, 
when all measures are used, that the 
amounts are lower where salaries and 
commissions are employed in sixteen, 



and lower where salaries alone are 
used, in eight of the cases. 

Obviously, the tables in question 
have other iLses than those of indicat- 
ing the relative advantages, so far as 
expenses are concerned, of using dif- 
ferent methods of compensating sales- 
men. The norms or standards them- 
selves are of interest, reflecting, as 
they do for a rather large experience, 
the conditions which obtain in retail 
clothing stores. 

Tables 180 to 183, inclusive, show 
the amounts paid to salesmen in 
stores classified by size and by the 
use or non-use of bonuses. 

In terms of sales, the amounts of 



260 



wages and salaries, as shown in Tables 
180 and 181, are lower in every case 
except one where stores paid no 
bonuses. When they are expressed 
as proportionate parts of selling ex- 
pense, as in Tables 182 and 183, they 
are lower where no bonuses are paid 
for seven groups of stores and lower 
where bonuses are paid in five of the 
groups. 

"When they are measured in terms of 
sales and of selling expense alone, as 
in Tables 180 and 182, they are lower 
in seven cases where bonuses are not 
used and lower in one where they are 
used. When they are expressed in 



terms of sales and of selling expense 
for each turnover, as in Tables 180 
and 182, they are lower where bonuses 
are not paid in six of the eases and 
lower where bonuses are paid in two 
of the cases. When they are expressed 
in terms of sales and of selling ex- 
pense per $1,000 sold per full-time 
sales-person, as in Tables 181 and 
183, they are lower where bonuses are 
not paid in five, and where bonuses 
are paid in two of the cases. Cumu- 
lating the evidence, therefore, the 
amounts, when measured in all the 
different units, are lower in eighteen 
cases where no bonuses are paid, and 



TABLE 180 

AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER STOCK TURN- 
OVER, FOR STORES PAYING OR NOT PAYING A BONUS TO REGULiVR 
SALESMEN, CLASSIFIED BY SIZE OF STORE, 1919 





Method 

of 

Conpo nfi a 1 1 on 


Number 

of 
Stores 


Wa^cs and Salaries per $100 of 
Total Net Sales 


IVages and Salaries per $100 of Total Net Sales 
per Stock Turnover 


Totcl 
Set Bales 


Amount 


Per Cent. 


An aunt 


Per Cent. 


(In OOO'b) 


Graphic 1 ^^^^j 
) 20 40 60 80 100 120 


'"'^^'' 1 Actual 
3 20 40 60 80 100 120 140 




Total 


254 


06.17 




100.0 


$2.94 




100.0 


Total 
(Average) 


T/ltb Bonus 
Ti'lthout BonuB 


60 
194 


6.85 
5.82 


; 


110.7 
94.3 


2.97 
2.77 


' 


101.0 
94.2 


; 






1 


; 




Total 
(Average) 


28 


4.58 


71.0 


2.92 


99.5 




; 


Dnder J4C 


Wltb BonuB 
without BonnB 


5 
23 


4.78 

4.30 


77.5 
69.7 


3.19 
2.e7 


108.5 
97.6 










: 




Total 
(Avorage ) 


S7 


5.46 


88.5 


3.03 










(40 to $80 


\!lth Bonus 
Without Bonus 


a4 

65 


6.69 
5.24 


108.4 
84,9 


3.55 

3.08 


113.9 
104.8 










1 


i 




Total 
(Average) 


69 


6.68 


108.5 


3.52 


119.7 








Sao to $180 


Blth Bonus 
Without Bonus 


26 
63 


7.16 
6.4e 


116.0 
105-0 


3.77 
3.41 


123.2 
116.0 










: 




Total 


40 


6.18 


100.2 


2.29 


77.9 




T.'lth Bonus 
T;ithout Bonus 


15 
25 


6.73 
5.70 


; 


109.1 
92.4 


2.59 
2.04 


: 


B8.1 
69.4 




1 ! 


: 









Averaee $6.17 



Average $2.94 



261 



TABLE 181 

AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER $1,000 OF SALES 

PER FULL-TIME SALES-PERSON FOR STORES PAYING OR NOT PAYING A BONUS 

TO REGLT.AR S.VLESMEN, CLASSIFIED BY SIZE OF STORE, 1919 





Uetbod 

of 

Coi-poMotion 


Kujnbor 

of 
Stores 


Wages and Salaries per ^100 of 
Total Net Sales 


iVases and Solortes per ClCO of Total Kot Sales 
per $1,000 of Sales par Pull-tine Sales-peraon 


Total 
Hot Sal*s 


Amount 


Per Cent. 


Amount 


Per Cent. 




Qraphle 1 ;,^.^^i 
20 40 CO 80 100 120 


Graphic 1 ^^,,,^1 
: 20 40 60 80 100 120 140 




Total 
(Avcraco) 


254 


06.17 




100.0 


$0.30 














TotU 


nith Bonufl 
Ulthout Bonijis 


60 
194 


6.83 
5.02 


110.7 
94.3 


0.30 
0.30 


100.0 
100.0 




; 






1 






Total 
(Avorogo ) 


za 


4.J8 


71.0 


0.25 


83.3 






Under C-»0 


Kith Bonus 
Mthout Bonus 


S 

23 


4.78 
4.30 


77.5 
69.7 


0.27 
0.24 


90.0 
80.0 










Total 

(Avc-ra-c) 


97 


5.46 


80.5 


0.33 


110.0 




: 




£40 to Seo 


Kith Bonus 
riltbout Bonus 


14 

83 


6.69 
5.24 


108.4 
84.9 


0.38 

0.33 


126.7 
110.0 




: 












Totnl 
(Avorace ) 


89 


6.68 


108.3 


0.34 


U3.3 








Sso to JlSO 


■..Ith Bonus 
V;lthout Bonus 


26 
6; 


7.16 

6. '.a 


116.0 
105.0 


0.36 
0.34 


120.0 
113.3 
















Total 


40 


6.ie 


100.2 


0.26 


86.7 


$130 & over 


Wltli Boms 
Witliout Bonus 


IS 
25 


6.73 

5.70 




109.1 
92.4 


0.26 
0.26 




86,7 
86.7 










1 



Average ^.17 



Average 0C'»3O 



lower where bonuses are used in five 
cases. 

From the evidence available, it 
seems safe to conclude that bonus pay- 
ments, having little or no relation to 
salesmen 's activities, result in making 
wages and salaries relatively high. 
On the other hand, when commissions 
are paid, salesmen's activities are 
stimulated with the result that wages 
and salaries in terms of sales are rela- 
tively lower under such conditions 
than when straight salaries alone 
obtain.* 

* A somewhat different conclusion was 
reached in the discussion of total selling 



It is not contended, of course, that 
these data prove a causal connection 
between the method of paying sales- 
men and the expenses involved. With 
another selection, or with a more gen- 
erous sampling of stores, the conclu- 
sions might have been different. The 
tables are incorporated in the study 
largely because they represent the 
information available, and they may 
be useful in the establishment of 

expense in relation to the methods by which 
salesmen are paid. Obviously, it is more 
satisfactory to rest the case in this respect 
on conclusions drawn from an analysis of 
wages and salaries alone than from an an- 
alysis of tlie total selling expense into which 
enter expenses other than wages and salaries. 



262 



TABLE 182 



AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER STOCK TURN- 
OVER, FOR STORES PAYING OR NOT PAYING A BONUS TO REGULAR 
SALESMEN, CLASSIFIED BY SIZE OF STORE, 1919 



ClacElflcd 

Total 
Net Sales 


Method 

or 

CompenBBtlon 


Number 

or 
Stores 


nages and Salaries per JlOO of Selling Expense 


Wages and Salaries per $100 of Selling Supensa 
per Stock Turno«er 


Amoiint 


Per Cent. 


Amo^int 
( 


Per Cent. 


(In OOO's) 


Grapblo 1 

lActual 
D 20 40 60 80 100 120 140 


Graphic 1 

1 Actual 
20 40 60 80 100 120 140 160 180 




Total 
(Avci-nce) 


254 


$63.21 




100.0 


$30.10 




100.0 






1 


Total 


T;ith Bonus 
iVlthO'it BoiTiS 


60 
194 


62.33 
. 63.76 


93.6 
100.9 


27.10 
30.36 


90.0 
100.9 


(Average) 




^^^^"'^^ : 










Total 
fAverago) 


28 


71.97 




113.9 


47.98 


i 








; 




Under $40 


'.ilth Bonus 
'./Ithout Bonus 


5 

23 


78.98 
70.54 


124.9 
111.5 


52.65 

47.03 


1 ' 

174.9 
156.2 




' 




Total 
(Avorago) 


97 


72.24 




114.3 


40.13 


: 


133.3 








i4o to ;eo 


'.VI th Bonus 
■Jit.-iout Bonus 


14 
83 


80.78 

70.54 


127.8 
111.6 


40. J? 
41.49 


134.2 
137.8 




1 II 




Total 
(Average) 


89 


66.60 




105.4 


35.05 




116.4 




; 


^^ 


iSO to Jl60 


'.Jlth Bonus 
without Bonus 


26 
63 


65.04 
67.36 


102,9 
106,6 


34.23 
35.45 


113.7 
117.8 














Total 
(Average) 


40 


57.94 


91.7 


21.46 


71.3 




; 


Jieo l over 


Wltil Bonus 
VJltllout Bonus 


IS 
25 


59.10 
66.82 


93.5 
69.9 


22.75 

20.23 




75.5 
67.4 






1 



Averaso §63, 21 



Average $S0.10 



norms for the guidance of merchants 
in this field of distribution. 

4. — YEARLY AMOUNTS OF WAGES AND 
SALARIES IN RELATION TO THE EX- 
PENDITURES FOR RENT AND INVEST- 
MENTS IN FIXTURES, FOR STORES 
CLASSIFIED BY YEARS, BY SIZE, AND 
BY LOCATION. 

The discussion of the amounts of 
wages and salaries follows that for 
the corresponding section relating to 
total amounts of selling expense, and 
utilizes, in most respects, the same 
units of comparison.* 

* The methods by which these units are 
computed are erplained on page 4. 



(1) — YEARLY AMOUNTS OF WAGES AND 
SALARIES IN RELATION TO EXPEN- 
DITURES FOR RENT PER 100 
SQUARE FEET OF FLOOR SPACE. 

The same 303 stores which are used 
to determine the relation of selling 
expense to expenditures for rent per 
100 square feet of floor space, are 
analyzed below in the study of wages 
and salaries for stores similarly 
grouped. The records are available, 
in the detail given, for 1919 only. In 
view of the discussion of selling ex- 
pense in relation to expenditures for 
rent, it is necessary in the treatment 
of wages and salaries to print only 



263 



TABLE 183 



AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER $1,000 OF SALES 

PER FLXL-TIME SALES-PERSON, FOR STORES PAYING OR NOT PAYING A BONUS 

TO REGULAR SALESMEN, CLASSIFIED BY SIZE OF STORE, 1919 





Uathod 

or 

ConponAatlon 


Nunbar 

of 
Storoo 


Vaces and Salaries par llOO of Selling Expense 


nagea and Salaries par $100 of Selling Sxpeoae 
per $1,000 of Sales per Pull-time Salea-poraon 


Total 


Amount 


Per Cent, 


Amount 


Per Cant. 


<ln 000'.) 


""P"" 1 Actual 
20 40 60 80 100 120 140 


"'^"f"' 1 Actual 
20 40 60 BO 100 120 140 160 




Total 
(Averaga) 


25.1 


$63.21 




100 .o" 


03.11 




100.0 








Total 
(ATorm^) 


VI th Bonus 
Without Sonus 


60 
194 


62.33 
63.76 


98.6 
100.9 


2.75 
3.31 


es.« 

106.« 




^" ! 










Total 
(Avoro5«) 


28 


71.97 


113.9 


4.05 


iso.a 








Ondsr t40 


Tilth Bonus 
Without Bonus 


S 

2S 


78.98 
70.64 


124,9 
U1.6 


4.39 
3.98 


141,2 
128.0 








■ 






Total 
(Avaraga) 


97 


72.24 


114.3 


4.42 


142.1 






: 


t40 to 180 


VI tb Borjis 
Without Bonus 


14 

83 


80.78 
70.54 


127.8 
111.6 


4.55 
1.28 


145,5 
140. a 




1 1 II 1 1 aiH 










Total 
(Av«ra»;e) 


89 


66.60 


105.4 


3,43 


110.3 








tso to $1S0 


With Bonus 
Without Bonus 


26 
63 


6S.04 
67.36 


102.9 

106.6 


3.27 
3.51 


105.1 
112.9 








; 






Total 
(Avorago) 


40 


57.94 


91.7 


2.45 


78.9 




i 




tlSO & OTor 


Vith Bonus 
Without Bonus 


15 
25 


59.10 
50.82 


93.5 

89.9 


2.33 

2.55 


74.9 
82.0 


; 




^^^^ ; 










Average $65.21 






Average J3.U 





those tables which have particular 
application to the subject. 

A. — Yearly Amounts of Wages and 
Salaries per $100 of Total Net 
Sales and per $100 of Selling Ex- 
pense, for Stares Classified\ hy 
Size, 1919. 

Table 184 shows the amounts of 
w'ages and salaries per $100 of total 
net sales and per $100 of total net sales 
for the amount sold per square foot 
of floor space for 303 stores, classi- 
fied by size and by expenditures for 
rent for each 100 square feet of floor 
space used. Attention has already 



been called to the fact that expendi- 
tures for wages and salaries, meas- 
ured in terms of sales increase, and, 
when expressed in terms of sales and 
the amounts sold per unit of floor 
space, decrease as stores increase in 
size. Of chief interest now are the 
amounts expressed in both units for 
stores with varying expenditures for 
rent. 

It will be recalled from an earlier 
discussion that, for a given amount 
of sales, less floor space is used when 
rentals are high than when they are 
low, and this fact should be kept in 
mind in interpi-eting the details of 



264 



Table 184 wherein the amounts are 
expressed in the unit of sales made 
on a given floor space. 

When the stores are classified by 
size, the general tendency for two of 
the groups of stores is for the amounts 
of wages and salaries per $100 of 
total net sales to increase as the 
amounts expended for rent per 100 
square feet of floor space increase. 
For the remaining groups, the direc- 
tion of change is uncertain. An in- 
crease, however, would normally be 
expected in view of the fact that 
wages and salaries, relative to sales, 
are high in the large stores, and it is 
these stores in which the rentals rela- 
tive to floor space are high. 

The store-groups which have large 
amounts of wages and salaries in 
terms of sales have small amounts 
when they are expressed in terms of 
the amounts sold per square foot of 
floor space. "Within each group of 
stores, when classified by size, they 
decrease as the rent paid per 100 
square feet of floor space increases. 
This is to be expected in view of the 
rduced floor space which accompanies 
high rentals. That is, as the rents 
paid per 100 square feet of floor space 
increase, there is a tendency to save 
on the space occupied, thus producing 
larger amounts of sales for each unit 
of space. When the amounts of 
wages and salaries are divided by 
sales and further by the amounts sold 
per unit of floor space, they are re- 
duced. The extent of this reduction 
in the different store-groups may be 
seen by consulting Table 184. 

In an earlier discussion it is shown, 



as a result of studying various groups 
of stores, that the amounts of wages 
and salaries, as proportions of sell- 
ing expense, decrease as stores in- 
crease in size. It is also shown, when 
they are measured in terms of sales 
made per square foot of floor space, 
that they decrease as stores increase 
in size. Table 185 confirms both of 
these tendencies. Interest, at this 
point, however, is not so much in the 
relative size of wages and salaries for 
stores of different size as it is in the 
relative amounts for stores of the 
same size, but with different expendi- 
tures for rent per square foot of floor 
space. The details of Table 185 show 
that for each group of stores, when 
classified by size, there is a tendency 
for the proportions which these 
amounts constitute of total selling ex- 
pense, to decrease as the amounts 
spent for rent per square foot of floor 
space increase. 

When wages and salaries are ex- 
pressed as proportionate parts of sell- 
ing expense and these in turn are 
divided by the amounts sold per 
square foot of floor space they rapidly 
decrease as expenditures for rent in 
terms of floor space increase. This is 
to be expected in view of the fact, as 
noted above, that with high rents 
there is a tendency for stores to save 
in floor space. The nature of these 
decreases as well as the actual 
amounts may be seen by consulting 
the details of Table 185. The graphic 
part of the table throws into bold 
relief the unmistakable tendency 
which characterizes the amounts in 
each group of stores. 



265 



TABLE 184 



AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES FOR THE AMOUNT 

SOLD PER SQUARE FOOT OF FLOOR SPACE, FOR STORES CK:VSSIFIED BY SIZE AND 

BY AMOUNT OF RENT PER 100 SQUARE FEET OF FLOOR SPACE, 1919 





iBnnt of 
Bant POT aoo 

•q. ft. of 
Hoot Spw* 


Sind>«T 

of 
Storoa 


Vmgoa and Salarlaa p«r IllOO of Total 


Rat Salae 


Wages and Salarlea por flOO of Total Hot Solea 
par Salaa per Square Poot of Floor Space 


ciusiri*d 

Tot«l 


AS^TUBt 


Per Cant. 


^ 


Par Cant. 


(In OOO'b) 


Orapblo 
20 40 60 80 100 120 140 160 


Aotual 


3 20 40 60 80 100 120 140 160 180 




Tot»l 
(ATer»Fo) 


503 


16.54 




100.0 


t0.2« 




100 .o 










UaieT tCO 
ISO to |40 

|4o to leo 

jeo 4 over 


54 

120 
65 

66 


9.28 
5.75 
7.27 
5.97 




141.9 
67,9 

111.2 
91.5 


0,55 

■ «.:o 

0.27 
O.IS 


211. S* 
11S.« 
109.S 
61. S 








(ATe>r«s») 


^^^^^^ 


; 










TDt*l 
(Avars r«) 


4S 


4.48 




68.5 


0.51 


U9.2 








Oador ISO 

ISO to |40 
J40 to »60 

|60 k ever 


10 
2S 

7 
S 


5.25 
5.90 
4. 59 
6.59 


eo.o 

59.6 
69.7 
100. s 


0.64 
0.25 
0.29 
0.21 


246,2* 
88. S 

lll.S 
80.8 


Tbilcr |40 




: 




1 






1 




Tot»l 
(ATorapo) 


lis 


5.09 


77.8 


0,27 


103.8 




! 




Dndor tZO 
ISO to |40 

|40 to leo 

|60 4 over 


16 
48 
25 

E6 


5.01 
4.41 

5.42 

6.00 


76.6 
67.4 
82,9 

91.7 


0.50 
0.25 
0.25 
0.20 


192.5* 
88.5 
96.2 
76.9 








^"*"^"" • 












Tot«a 

(ATor*^ } 


1C2 


6.54 


100.0 


0.28 


107.7 










Onler ISO 
ISO to |«0 
|40 to |60 
ISO 4 ovor 


6 
41 
25 
52 


6.64 
6,60 
6.55 

6.se 


101.5 
104.0 
97.1 
9T,2 


0.42 
0.55 
0,25 
0.19 


161.5 
1S4.6 
S6.2 
7S.1 


|30 to llBO 












: 


I 




1 




Tot»l 
(Aversge ) 


45 


7. so 


U1.6 


0,21 


80 .8 








Under ISO 
ISO to |40 
♦40 to 160 
|eo k oTor 


2 

6 
10 
2S 


IS. 69 
5.85 
e.55 
5.78 


209.5* 
89.4 

150.7 
88.4 


0.52 
0.25 
0.23 
0.15 




123.1 
96.2 

107.7 
67.7 


Siao h crm 

















B. — Yearly Amounts of Wages and 
Salaries per $100 of Total Net 
Sales mid per $100 of Selling 
Expense, for Stores Classified hrj 
Size of City in Which Located* 
1919. 

The actual amounts of rent paid, 
as well as the relations which they 

* Population figures are for 1920. 



Avera^ $0.20 

*Pull length not ahcvn 

bear to the floor space utilized, are 
determined in large part by the size 
of the city in which the stores are 
located. Accordingly, it was neces- 
sary to classify by location the 303 
stores studied in Tables 184 and 185. 
Two city-groups have been used for 
this purpose — those with population 
under 40,000 and those with popula- 
tion of 40,000 and over. For each 



266 



group of stores, as located, a further 
classification has been made accord- 
ing to the rent expenditures per 100 
square feet of floor space. For each 
group of stores in this detail, the 
amounts of wages and salaries per 
$100 of total net sales and per $100 
of total net sales for the amounts sold 
per square foot of floor space have 



been determined. They are shown in 
Table 186. 

For the 225 stores located in the 
small cities and for the 78 stores 
located in the large cities, there is 
no unmistakable tendency for the 
amounts of wages and salaries per 
$100 of total net sales to increase or 
to decrease with the amounts ex- 



TABLE 185 

AMOUNT OF WAGES AND SALARIES PER $100 OP SELLING EXPENSE PER SALES PER 

SQUARE FOOT OF FLOOR SPACE, FOR STORES CLASSIFIED BY SIZE AND BY 

AMOUNT OF RENT PER 100 SQUARE FEET OF FLOOR SPACE, 1919 



ClUBlfl«4 

Total 
Bst Salee 


H»ot per 100 
»«. ft. of 
Floor Spue 


IhjKbor 

of 
StorOB 


Wages and Salaries per $100 of 
Selling Scpense 




Wagos end Salaries per $100 or Selling Expeose 
per Sales por Square Foot of Floor Space 


Aaonut 


Per Cent. 


Amount 


Per Cent. 


(IB OOO'l) 


Oraphlo 
} 20 40 60 eo 100 120 140 


Aehial 


Or^I^c 1 Actual 
20 40 60 80 100 120 140 160 180 200 




Total 
(ATorago ) 


SOS 


$6S,S6 




100.0 


$2.59 


1 








: 






ttedar tZO 
120 to $40 
$40 to |60 
»60»ovor 


94 

120 
63 

86 


77.6» 
70.59 
68. 6» 
56.41 


U6.9 

106.9 
104.3 
88.7 


4.63 

3.63 
2.68 
1.61 


178.8 
140.2 
99.6 
62.2 


Total 
(Averegcl 














■— ■" 








Total 
(Avorago) 


4S 


69.37 


lOS.S 


4.S4 














DniJsr $20 
$20 to $40 
$40 to $60 
$60 & OTor 


10 
2S 

7 


71.61 
67.56 

ee.so 

7S.76 


ioe.7 

102.3 
105.7 
115.0 


8.71 
3.96 
4.41 
2.40 


336.5^ 
152.9 
170.3 
92.7 


Older $40 




















Total 
UT»rag») 


US 


71.51 




108. S 


5.82 




147. S 










Qidu- $20 
$20 to $40 
$40 to $60 
$60 ft OTor 


16 

4a 

23 
26 


75.57 
69.61 
71.73 
71.10 


114.8 
105.7 
108.9 

loa.o 


7.50 
3.69 
S.SO 
2.55 


289.6' 
142.5 
127.4 
90.0 


»4o to »eo 










"J"J"" 










Total 
(AToraga) 


102 


66.79 


; 


101.4 


2.85 




110.0 










QvSer $20 
$20 to $40 
$40 to $60 
$60 ft over 


6 
11 
23 
32 


75.59 
72.41 
70. SS 

se.os 


; 


111.5 
110.0 

106.9 
S8.2 


4.68 

3.76 
2.75 
1.78 


ieo.7 

145.2 
10S.4 
68.7 


teo to Sifio 


""■^ 






^^^mv^mtM 






^^ """"T 










Total 


45 


63.73 




96.8 


1.82 


70.3 




tbder $20 
$20 to $40 
$40 to $60 
$60 » OTor 


2 
6 
10 
25 


79.63 
65.40 
67.38 
56, 58 




120.9 
99.5 

102.3 
85.9 


2.82 
2.82 
2.22 
1.42 




108.9 
106.9 
85.7 
54.8 


tlSOft onr 




^^^^^^^; 






: 






-«— 



AT«r«C» $65*85 



Avora^e ^2.S8 



*FalX lenc;th not siiama 



267 



pended for rent per 100 square feet 
of floor space. The average amount 
for the stores in the small cities is 
noticeably less than that for the stores 
in the large cities. Respectively, they 
are $5.92 and $7.15. Moreover, the 
amounts for stores with the same ex- 
penditure for rent, but with different 
location, are higher for the stores in 
the large than for those in the small 
cities. 

When the amounts of wages and 
salaries per $100 of total net sales 
for the amounts sold on each square 
foot of floor space are determined for 
the stores with different location and 
different expenditures for rent, the 



average for the stores in the large 
cities is less than that for the stores 
in the small cities, and within each, 
city-group the amounts decrease as 
the expenditures for rent increase. 
This tendency is likewise to be ex- 
pected in view of the general con- 
clusion that the higher the rent paid 
per unit of floor space, the smaller is 
the floor space used for a given 
amount of sales. 

Attention should be called to the 
fact, however, that in Table 186 no 
distinction is made for stores of dif- 
ferent size. When a city classifica- 
tion is used, however, the stores are, 
on the average, smaller in the small 



TABLE 186 

AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER SALES PER 

SQUARE FOOT OF FLOOR SPACE, FOR STORES CLASSIFIED BY SIZE OF CITY 

AND BY AMOUNT OP RENT PER 100 SQUARE FEET OF FLOOR SPACE, 1919 





AaOTint of 
Rent por 100 
•q. ft. of 
noor Spae# 


Ktjinbcr 

of 
Stores 


Wages and Salaries per iilOO of Total Met Sales 


Vlagea and Salarlaa per #100 of Total Met Sales 
per Sales per Square Poot of Floor Spaoe 


of 

CltT 

<ln 005'«) 


Aaount 


Per Cent. 


ABOvmt 


Per Cent. 


GrapMc [Actual 
3 20 40 60 80 100 120 140 160 


Opamie JAetual 
J 20 40 60 80 100 120 140 




Total 


JO 3 


#6.54 




100.0 


#0.26 




100.0 




Dsdar #20 
$20 to UO 
*40 to t«0 
t60 i OT9P 


54 

120 
63 
66 


9.28 
5.75 
7.27 
5.97 




141.9 
87.9 

111.2 
91.3 


0.55 
0.50 
0.27 
0.16 




2U.5* 
US.4 
103.8 
61.5 


Total 


T 




Urorage) 


















Total 
(Anraga) 


225 


S.92 


90.5 


0.28 


107.7 




; 






Under tSO 
420 to »40 
}40 to t«0 
t«0 i o».r 


52 

no 

El 
52 


5.63 

8.60 
6.05 
5.83 

7.15 


86.1 
05.6 
101.8 
89.1 


0.50 
0.27 
0.27 

o.ia 


192.5* 
103.8 
103.8 
69.2 


^ 














; 




• 




Total 
(ATorago ) 


78 


109.3 


0.22 


64. e' 






; 




rJaX»T tzo 
#20 to #40 
#40 to #60 
#eo & OTar 


2 
10 
12 
S4 


13.69 
6.88 
8.02 
6.00 


209.3* 
105.2 
122.5 
91.7 


0.32 
0.51 
0.27 
O.IS 


123.1 
196.2* 
103.8 
61.5 






r" 


OT«r 








^^I^M 


^ 1 1 




■ ■ ' 



ago #6.54 



ATwage #0.25 

*FulI lengtli not (hora 



268 



TABLE 187 

AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER SALES PER 

SQUARE FOOT OF FLOOR SPACE, FOR STORES CLASSIFIED BY SIZE OF CITY AND 

AMOUNT OF RENT PER 100 SQUARE FEET OF FLOOR SPACE, 1919 





Amount of 
Ront por 100 
rq. ft. of 
Floor SpacQ 


of 

Storea 


Wages and Salaries per $100 of 
Selling Expense 


ViageB ajid Salaries por,$100 of SeHln,7 txpjriso 
per Sales per Squaro Foot of Floor bpoco 


SI IS 

of 

city 

(In OOO's) 


Amount 


Per Cent. 


Amount 


Por Cent . 


20 40 60 80 100 120 140 


'>r''J'"'<: Actual 

p 20 40 60 no 100 120 140 160 130 200 




Total 
(Average) 


303 


«65.85 




100.0 


$2.59 




100.0 






• 




Undor S20 
t20 to %V1 
t40 t6 460 

»60 t ovor 


M 

120 
63 

86 


T7.69 
70.39 
68.63 
58.41 


118.0 
106.9 
104.3 
88.7 


4.53 

3.63 
2.58 
1.61 


178.8 
140.2 
99.5 
62.2 


Totil 




III III ■ 


(Avernge) 








; 






; 




Total 
(ATsrago) 


225 


71.46 


108.5 


3.42 




132.0 




; 






Under tZO 
t20 to ttO 
t*0 to $60 
»S0 a, over 


32 
110 
SI 
32 


74.08 
70.69 
72.65 
69.64 


112.5 
107.3 
110.3 
105.8 


6.63 
3.42 
2.94 
2.15 


256.0' 
132.0 
113.5 
83.0 


Undsr 
40 












■II ■ a 






: 






Total 
(Average) 


78 


61.38 


94.0 


1.91 


73.7 




\ 




Under tZO 
t20 to Uo 
^40 to J60 
$60 k over 


2 

10 
12 
54 


79.63 
68.60 
64.93 
56.21 


120.9 
104,2 
98.6 
65.4 


1.86 
5.08 
2.21 
1.50 


71.8 

196.1 

as.3 

57.9 


40 >nd 

















Averasa }65.85 



Pull length not shown 



than in the large cities. This would 
explain, in part, the difference in the 
totals for the stores in the two city- 
groups. 

Table 187 classifies the 303 stores 
in the same form as Table 186. The 
amounts of wages and salaries, how- 
ever, are expressed in Table 187 as 
proportionate parts of selling expense. 
When stores in the two city-groups, 
taken as a whole, are compared, it is 
found that the average amount of 
wages and salaries per $100 of sell- 
ing expense is $9.58 less for the stores 
in the large than for those in the 
small cities. The actual amounts 
are, respectively, $61,88 and $71.46. 
Within each city-group, when the 



stores are classified by the amounts 
of rent paid per square foot of floor 
space, wages and salaries become pro- 
portionately smaller parts of the sell- 
ing expense as the rent expenditures 
in terms of floor space increase. 
There are some exceptions to this 
general rule, but they are inconse- 
quential. 

When the amounts of wages and 
salaries, as proportionate parts of 
selling expense, are further expressed 
in terms of the sales per square foot 
of floor space, as is done in the right- 
hand columns of Table 187, the aver- 
ages are smaller for the stores in the 
large than for those in the small 
cities, and in both city-groups the 



269 



amounts decrease as the expenditures 
for rent increase. There are some ex- 
ceptions to this rule, but they are not 
sufficient to invalidate the general 
conclusion. 

C — Yearly Amounts of Wages and 
Salaries per $100 of Total Net 
Sales and per $100 of Selling 
Expense, for Stores Classified hy 
Size and hy Size of City in Which 
Located* 1919. 

Because of the effect which the loca- 
tion, as well as the size of stores, has 
upon the amount of rent paid per 
square foot of floor space, it has been 
thought of interest to select for special 
study a group of 87 stores having 
sales in 1919 between $40,000 and 
$80,000, and to classify them accord- 
ing to their expenditures for rent in 
terms of floor space. This is done in 

* Population figures are for 1920. 



Table 188. This table also includes 
comparative figures for stores paying 
$60 and over in rent per 100 square 
feet of floor space, but differently 
located. The methods by which 
amounts of wages and salaries are 
measured are those which have been 
used throughout this study. It is 
worth-while briefly to consider the 
actual amounts measured in the dif- 
ferent ways and the tendencies which 
characterize them under different 
conditions of rent expenditure. 

For the 87 stores located in cities 
with population of less than 40,000, it 
cost in wages and salaries $5.35 to 
sell $100 worth of goods. The aver- 
age amount per $100 of total net sales 
per stock turnover was $3.15 ; per 
$100 of total net sales for each $1,000 
sold per full-time sales-person it was 
$0.33 ; and in terms of sales for the 
amount sold per full-time sales-per- 



TABLE 188 

RELATION OP WAGES AND SALARIES TO TOTAL NET SALES AND SELLING EXPENSE, FOR 

STORES HAVING SALES BETWEEN $40,000 AND $80,000, CLASSIFIED 

BY SIZE OF CITY AND BY AMOUNT OF RENT PER 100 

SQUARE FEET OF FLOOR SPACE, 1919 





Anoont of 

Bent pep 

100 io. ft. 

Floor Space 


number 

of 
Storee 


Dages and Solarlel per (100 of Total Het Sales 


Wages and Salaries per (100 of Selling I^:pense 


of 

city 

(In ooo'e) 


Sales 
Alone 


Per 

Stock 

Turnover 


Per (1,000 of 
Sales per 

Pull-time 
Salea-peraon 


Per Salee 
per iq. ft. 

of 
Floor Space 


Selling 
Alone 


Per 

Stock 
Turnover 


Per (1,000 of 
Salee per 
Pull- tine 
Sales-person 


Per Sales 
per sq. ft. 

of 
Floor Space 




ATer*«e 


87 


(5.56 


(5.15 


(0.S9 


(O.Sl 


(72.60 


(42.71 


(4.42 


(4.17 


Dollar 
40 


Itoder (20 
(£0 to (40 
(40 to (60 
(60 k OTor 


U 
43 
17 
14 


5.27 

4.es 

6.11 
5.69 


2.64 
S.08 
5.S9 
S.S6 


C.28 

0.29 
0.40 
0.S7 


0.5S 
0.26 
0.26 
0.21 


60.82 
71.16 
72.97 
69.97 


40.16 
44.49 

40.54 
4J.7S 


4.27 
4.24 

4.76 
4.60 


6.10 
4.00 
3.51 

e.61 


40 md 


(«0 b. over 


10 


e.40 


2.7S 


0.37 


O.IS 


60. 6« 


90.29 


3.96 


2.11 



270 



son, $0.31. As the amounts expended 
for rent per unit of floor space in- 
crease, there is no tendency for wages 
and salaries in terms of sales alone 
either to increase or to decrease. This 
is not true, however, when the amounts 
are expressed in terms of sales per 
turnover. The larger the amount of 
rent paid per square foot of floor 
space, the larger is the amount of 
wages and salaries expressed in this 
unit. A similar increase with the 
amount of rent per 100 square feet of 
floor space holds also for wages and 
salaries expressed in terms of sales 
per $1,000 sold per full-time sales- 
person. On the other hand, the ten- 
dency is equally certain for the 
amounts, measured in terms of sales 
for the amount sold per square foot 
of floor space, to decrease as expendi- 
tures for rent per 100 square feet of 
floor space increase. 

When the amounts of wages and 
salaries are expressed as proportion- 
ate parts of selling expense, some- 
what different tendencies are ob- 
served. It is unnecessary to comment 
on these in particular. Those who 
are interested may consult the table 
as to amounts and directions of 
change. 

It is worth-while, however, to call 
attention to the fact that location 
affects the size of the amounts of 
wages and salaries when measured in 
terms of sales and of selling expense 
in stores having the same amount of 
expenditure for rent. Only a single 
group of stores — those which spent 
$60 and over per 100 square feet of 
floor space — is available for such a 



comparison. The details are found in 
Table 188. 

D. — Summary. 

(1). \Mien stores are classified by 
size, the amounts of wages 
and salaries in terms of sales 
increase in some and decrease 
in other groups, while, in 
terms of sales for the amount 
sold per square foot of floor 
space, they consistently de- 
crease as the rental payments 
per 100 square feet of floor 
space increase. 

(2). For stores of a given size, the 
amounts of wages and sal- 
aries in terms of selling ex- 
pense alone, and in terms of 
selling expense for the 
amounts sold per square foot 
of floor space decrease as the 
rent per square foot increases. 

(3). For stores with a given 
amount of rent per 100 square 
feet of floor space, the 
amounts of wages and sal- 
aries per $100 of total net 
sales are higher, while per 
$100 of total net sales, per 
sales per square foot of floor 
space, they are lower in large 
than in small cities. 

(4). For stores with a given 
rental per 100 square feet of 
floor space, the amounts of 
wages and salaries per $100 
of selling expense alone and 
per $100 of selling expense 
for the amount sold per 
square foot of floor space are 



271 



higher in small than in large 
cities. 

(5). When stores of a given size, 
located in small cities, are 
classified by the amounts of 
rent paid per 100 square feet 
of floor space, wages and sal- 
aries measured in terms of 
sales per stock turnover, and 
of sales for the amount sold 
per full-time sales-person in- 
crease, while in terms of sales 
for the amount sold per 
square foot of floor space they 
decrease, as the rental pay- 
ments per square foot of floor 
space increase. 

(6). When stores of a given size 
located in small cities are 
classified by amounts of rent 
paid per 100 square feet of 
floor space, wages and salaries 
measured in terms of selling 
expense for the amount sold 
per full-time sales-person in- 
crease and, in terms of selling 
expense for the amount sold 
per square foot of floor space, 
they decrease as the rental 
payments per square foot of 
floor space increase. The 
direction of change is uncer- 
tain for wages and salaries 
per $100 of selling expense 
per stock turnover. 

(2) — YEARLY AMOUNTS OP WAGES AND 
SALARIES IN RELATION TO INVEST- 
MENTS IN FIXTURES PER $100 OP 
TOTAL NET SALES. 

The order of the discussion of the 
amounts of wages and salaries per 



$100 of total net sales in this section 
closely follows that for the amounts 
of selling expense in relation to sales, 
pages 141 to 164. 

A. — Yearly Amounts of Wages and 
Salaries per $100 of Total Net 
Sales and per $100 of Selling 
Expense, 1919, 1918, and 1914. 

The records of 135 identical stores 
in each of the years, 1919, 1918, and 
1914, are available for the study of 
the amounts of wages and salaries 
paid to salesmen for each $100 of 
total net sales, for stores classified 
according to the amounts invested in 
fixtures in relation to sales. The de- 
tails are contained in Table 189. In 
1914 the amount was $7.64, in 1918, 
$7.48, and in 1919, $7.11. The aver- 
age for the three years is $7.34. Both 
wages and salaries increased from 
year to year, but sales increased the 
faster. Accordingly, wages and sal- 
aries in terms of sales decreased. 

When the stores are classified ac- 
cording to the amounts of fixture in- 
vestment, there is a general tendency 
in the combined and in the individual 
years for the amounts of wages and 
salaries to increase as the amounts in- 
vested in fixtures increase, both being 
expressed in terms of sales.* 

In Table 190 the amounts of wages 
and salaries are expressed as propor- 
tionate parts of total selling expense. 
For the stores in the combined years, 
the average amount is $67.28. In 

* In 1919 and 1918 the average amounts 
are relatively large for the stores having less 
than $2 ])or $100 of sales invested in fixtures. 
The explanation for these variations is 
found in Tables 194 and 195. 



272 



1914 the average amount was $65.83, 
in 1918, $67.87, and in 1919, $67.54. 
That is, there was an increase be- 
tween 1914 and 1918, and a slight de- 
crease between 1918 and 1919. When 
the stores are classified by the amount 
invested in fixtures per $100 of total 



net sales, there is a general tendency 
for the amounts of wages and salaries 
in terms of selling expense to de- 
crease as fixture investments in rela- 
tion to sales increase. Inasmuch, 
however, as the stores from year to 
year differ in size, and that the 



TABLE 189 

TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER 

$100 OF TOTAL NET SALES, FOR 135 IDENTICAL STORES CLASSIFIED 

BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL 

NET SALES, 1919, 1918, AND 1914 





Amount of 
Plxturo Aeoount 

per $100 of 
Total Hat Sales 


number 

of 
Store- 
years 


Total 
net Sales 


Total 
Wages & 
Salaries 


Wages and Salaries per JlOO of 
Total Net Sales 




Amount 
( 


Per Cent. 




Graphic Actual 
3 20 40 60 80 100 120 




Total 
(Average) 


405 


#40,576,908 


♦2,979,262 


*7.34 




100.0 








trader |2 
»2 to U 
»4 to ^6 
#6 t over 


72 
131 

86 
116 


8,020,930 
10,428,502 

7,841,253 
14,286,443 


596,212 

652,819 

496,580 

1,235,661 


7.45 
6.26 
6.33 
8.64 






Total 
(Ayerag« ) 








86.2 
117.7 












Total 
(Average ) 


135 


18,919,233 


1,545,703 


7.11 


1 
t 


96,9 




i 

• 




Dhder (2 
»2 to (4 
|4 to ^ 
t6 k over 


38 
51 
£S 
25 


5,228,703 
4,897,266 
5,175,841 
5.619,423 


374,193 
278,736 
216,764 
476, OU 


7-16 
5.69 
6.83 
8.47 


97.5 
77.5 


1919 


1 




; 




: 


115.4 




i 




Total 
(Average) 


135 


13,360,146 


999, 983 


7.48 


101.9 




Dhder (2 
|2 to U 

^ to |6 
te & over 


20 
45 
34 

56 


2,163,476 
5,706,654 
2,807,944 
4,682,071 


188,851 
242, 626 
158,878 
409,628 


8.73 
6.55 
5.66 
8.75 






1918 




89.2 

77.1 

119.2 












1 




Total 
(Average ) 


135 


8,297,630 


633,576 


7.64 


104.1 








Under iz 
is to i4 

$4 to $6 
(6 & over 


14 

35 
29 
57 


628,751 

1,824,382 
1,859,448 
5,984,949 


33,168 
131,458 
120,938 
348,012 


5.28 
7.21 
6.50 
8.73 


71.9 

98.2 

88.6 

118.9 


1914 














1 



Average $7.54 



273 



TABLE 190 

TOT.VL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES Ain> 

SALARIES PER $100 OF SELLING EXPENSE, FOR 135 IDENTICAL STORES 

CLASSIFIED BY AMOUNT OF FIXTURE ACCOUNT PER $100 

OF TOTAL NET SALES, 1919, 1918, AND 1914 





Amount of 
Fixture- Aocount 

per flOO of 
Total Bet Sales 


number 

of 
Store- 
years 


Total 
Selling 
Expense 


Total 
TTages k 
Salaries 


Wages and Salaries per llOO of 
Belling Expense 


Yeore 


Amoxmt 


Per Cent. 




Graphic Actual 
) 20 40 60 80 100 120 




Total 
(Average) 


40S 


(4,428,098 


$2,979,262 


#67.28 




100.0 








Under iZ 
|2 to i4 
|4 to $6 

|6 & over 


72 
131 

66 
116 


858,922 

985,648 

798,319 

1,811,209 


596,212 

652,819 

496, 580 

1,233,651 


71.58 
66.23 
62.20 
68. U 


106.4 
98.4 
92.4 

101.2 


(Average) 


i 








1 




i 




Total 
(Average ) 


155 


1,992,310 


1,345,703 


67.54 


100.4 




1 




Under $2 
i2 to f4 
U to $6 
$6 & over 


38 
51 
25 
25 


555,232 
428,443 
326,474 
702,161 


374,193 
278,735 
216,764 
476, OU 


69.91 
65.06 
66.40 
67.79 


103.9 
96.7 
98.7 

100.8 


1919 






: 




: 








Total 
(Average) 


135 


1,473,360 


■ 999,983 


67.87 


100.9 




I 




Under $2 
$2 to $4 
$4 to (6 
to & over 


20 
45 
34 

36 


244,748 
370,532 
867,521 
590,559 


188,851 
242,626 
158,878 
409,628 


77.16 
65.48 
59.39 
69.36 


114.7 
97.3 
88.3 

103.1 


1918 


; 




' 












Total 
(Average } 


135 


962,428 


635,576 


65.83 


97.6 




1 




Under |2 
$2 to $4 
|4 to $6 
^6 & over 


14 
35 
29 
57 


52,942 
186,673 
204,324 
518,489 


33,168 
131,458 
120,938 
548,012 


62.65 
70.42 
59.19 
67.12 


93.1 

104.7 

88.0 

99.6 

: :: 1 


1914 






[ 











amounts both of wages and salaries 
and of selling expense are influenced 
by the size of the store, the absence 
of a marked tendency of change is to 
be expected. The relation of wages 
and salaries to selling expense for 
stores of different size is discussed 
later. 



Average $67.28'/ 

B. — Yearly Amounts of Wages and 
Salaries per $100 of Total Net 
Sales and per $100 of Selling Ex- 
pense, for Stores Classified hy 
Size, 1919, 1918, and 1914. 

The records of two groups of stores 
are available for the study of wages 



274 



and salaries for stores classified by 
size and by investment in fixtures per 
$100 of total net sales. The first 
group — 303 stores — applies alone to 
1919. For 1919, 1918, and 1914, the 
records of 135 identical stores are 
used. 

In 1919, based upon 303 stores, it 
cost $6.54 in wages and salaries to 
sell $100 worth of goods. As the 
stores increase in size, the amounts 
increase, the minimum — $4.48 — char- 
acterizing the stores with sales under 
$40,000 and the maximum— $7.30— 
applying to the stores with sales of 
$180,000 and over. When the stores 
are classified by size, and further by 
the amounts of fixture investments 
per $100 of total net sales, the 
amounts of wages and salaries per 
$100 of total net sales increase as the 
fixture investments, similarly meas- 
ured, increase. To this general rule 
there are some exceptions, but they 
are neither important nor numerous. 

The purpose of classifying the 
stores as in Table 191 is to secure, if 
possible, an answer to the following 
question: Are wages and salaries in 
terms of sales relatively high in stores 
which have relatively large amounts 
invested in fixtures in relation to 
sales ? The results of the analysis make 
it possible, with certain reservations, 
to answer the question in the affirma- 
tive. The stores as grouped are not 
precisely identical in size, although the 
variations, on the average, within the 
groups are not large. Obviously, 
there are many conditions which de- 
termine the amounts of wages and 
salaries. It is the purpose of this 



analysis to show only the association 
between high wages and salaries and 
high fixture investments when both 
are measured in sales. 

In Table 192 the amounts of total 
net sales secured for each $100 of 
wages and salaries paid, have been 
calculated for the 303 stores as in 
Table 191. As the stores increase in 
size, relatively smaller amounts of 
sales are secured for each $100 of 
wages and salaries. For each group 
of stores, when classified by size, and 
for the total, there is a general ten- 
dency for the amounts of sales secured 
for each $100 of wages and salaries 
paid to decrease as the amounts in- 
vested in fixtures in relation to sales 
increase. In the total-section of the 
table, the decrease is more apparent 
than real, depending as it does upon 
the proportion in which stores of dif- 
ferent size are included. It is the 
large stores which have relatively 
large fixture investments in relation 
to sales and it is precisely those which 
have relatively low amounts of sales 
in terms of wages and salaries paid. 
Accordingly, the effect of grouping 
all the stores together as in the total- 
section is to emphasize the inverse re- 
lation between sales secured for a 
given wage payment and the amounts 
invested in fixtures. A more suitable 
comparison is found in the details for 
stores of essentially the same size. 
For these stores, the tendency for the 
amounts of sales per $100 of wages 
and salaries paid to decrease is not 
uniform, although it is generally ap- 
parent. Irrespective of any tendency 
which the amounts may describe, 



275 



TABLE 191 

TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER 

$100 OF TOTAL NET SALES, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919 





ikaoont of 
Pljcture Account 

per llOO of 
Total Uet Bales 


Hnnber 

of 
Stores 


Total 
Ret Sales 


Total 

V7age8 t 
Salaries 


Wages and Salaries per #100 of 
Total Net Sales 


Olasilflad 

Total 
Hat Sales 
(In OOO'a) 


Amount 
C 


Per Cent. 


Graphic , ^ . 
Aetnal 

20 40 60 80 100 120 140 




Total 
(ATerage) 


SOS 


♦36,195,718 


#2,367,501 


#6.54 








1 






Under iz 
$2 to $4 
U to |6 
|6 fc over 


89 
120 
46 
48 


10,793,092 
11,972,443 
4,736,899 
8,691,184 


697,444 
673,257 
318,639 
678,161 


6.46 
5.62 
6.73 
7.80 


98.8 
65.9 
102.9 
U9.5 


Total 
(Average ) 

















Iota! 
(Average) 


45 


1,599,886 


62,748 


4.48 


68.5 


Cnder $40 


Under #2 
*2 to #4 
$4 to $6 

|6 k over 


10 

16 

9 

10 


323,183 
488,941 
283,784 
303,978 


9,608 
20,320 
16,979 
15,841 


2.97 

4.16 
5.98 
5.21 


45.4 

63.6 
91.4 
79.7 




• 








Total 
(Average) 


lis 


6,500,336 


330,557 


5.09 


77.8 






^ to $80 


Under (2 
*2 to $4 

»4 tots 
$6 & over 


28 

57 
17 
U 


1,609,446 

3,371,123 

981, 374 

538,393 


68,619 

165,727 

69,996 

26,215 


4.26 
4.92 
7.13 
4.87 


6S.1 

75.8 
109.0 
74.5 
















Total 
(Average ) 


102 


11,966,362 


784,290 


6.54 


100. 








Under $2 
|2 to $4 
$4 to $6 
$6 & over 


S6 

se 

IS 
15 


4,187,940 
4,268,220 
1,658,547 
1,871,655 


278,765 
247,891 
123,810 
133,824 


6.66 

s.ei 

7.46 
7.15 


101. a 

ee.a 

114.1 
109. S 


|80 to llSO 


1 




1 




^1 








Total 
(Average) 


43 


16,307,134 


1,189,906 


7.50 


111.6 








Under t2 
|2 to U 

t4 to #6 

|6 fc over 


15 
11 
5 
12 


4,672,523 
3,844,159 
1,813,294 
5,977,158 


340,452 
239,519 
107,864 
502,281 


7.29 
6.23 
6.95 
8.40 


' 


111.6 
96.3 
91.0 

128.« 


|180 & OTOr 


' 








' 







Avarago |6.64 



276 



they are significant in themselves as 
standards obtaining in 1919 for stores 
of different size having different 
amounts of fixtures in relation to 
their sales. 

For the years 1919, 1918, and 1914, 
combined and individually, the rec- 
ords of 135 stores are available for 



the same type of analysis as that 
made in Table 191. For the stores 
for the combined years, as shown in 
Table 193, it cost in wages and sal- 
aries $7.34 to sell $100 worth of goods. 
As the stores increase in size, the ex- 
pense for this purpose, measured in 
sales, increases from $5.90 for stores 



TABLE 192 

WAGES AND SALARIES, TOTAL NET SALES, AND AMOUNT OF TOTAL NET SALES PER 

$100 OF W^AGES AND SALARIES, FOR STORES CLASSIFIED BY SIZE AND BY 

AMOUNT OF FIXTURE ACCOUNT PER $100 OP TOTAL NET SALES, 1919 





iaoont of 
Flztura Aecmmt 

p«r llOO of 
total Bet Bales 


Snaber 

•f 
Store* 


TotU 
Wagei k 
Salaries 


Total 
Bet Salea 


Total Het Salea per $100 of Hages and Salaries 


ClMilfled 
»»t»l 

let Bale* 


AaoviBt 


Per Cent, 


(IB 000'*) 


Graphic ^ ^ , 
Actual 

20 40 60 80 100 120 140 160 ISO 200 220 




Total 
(Average) 


303 


t2, 367, 501 


$56,193,718 


|l,529 




100.0 








Under |2 
♦S to ♦« 
«4 to «6 

#€ & over 


e» 

120 
4€ 
48 


6S7,444 
673,257 
S18,63S 
676,161 


10,793,092 
U, 972, 443 
4,736,999 
8,691,184 


1,548 
1,778 
1,487 
1,282 


- 


total 
(ATerage) 
























Total 
(Average ) 


45 


62,748 


1,399,886 


2,231 












Onder iZ 
♦« to »4 

t* to |6 

t6 4 over 


10 
16 
9 
10 


8,608 
80,520 
16,979 
15,841 


363,183 
488,941 
283,784 
303,978 


3,364 
2,406 
1,671 
1,919 




Osder Uo 










157.4 






12&.S 








Total 
(Avars Re) 


lis 


330.567 


6,500,336 


1,966 












Under $2 

HtoU 

»4 to»6 
t6 i over 


28 
57 

n 

11 


68,619 
165,727 
69,996 
26,215 


1,609,446 

3,371,123 

981,374 

538,393 


2,345 

2,034 
1,402 
2,054 




>iO to too 




153.4 
133.0 




















Total 
(Average) 


102 


784,290 


11,986,362 








' 








Under iZ 
»2 to i4 
U to »6 

$6 k over 


36 
36 
15 

IS 


278,765 
247,891 
123,810 
133,624 


4.187,940 
4,268,220 
1,558,547 
1,871,655 




; 




|80 to «150 


1,502 




112.6 




' 










91.5 




1,399 


; 




Total 
(Average ) 


43 


1,189,906 


16,307,134 




69.6 




' 


; 




Under iZ 

tz to U 

i* to J6 
|6 4 over 


IS 
11 
5 
12 


340,452 

239,319 

107,854 

1 602,261 


4,672,525 
3,844,159 
1,813,294 
5,977,158 




89.7 

105.0 
109.9 


llSO k over 


' 






' 






1.681 






1,1^ 


















Average $1,52» 





277 



TABLE 193 

TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF VTAGES AND SALARIES PER 

$100 OF TOTAL NET SALES, FOR 135 IDENTICAL STORES CLASSIFIED BY SIZE 

AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL 

NET SALES, 1919, 1918, AND 1914, COMBINED 





Amount of 
Fixture Account 

per $100 of 
Total Nat Sales 


Hunbar 

of 
Store- 
ys ars 


Total 
Hat Sales 


Total 
Wages 8c 
Salaries 


Wages and Salaries per $100 of 
Total Nat Sales 


Classified 
Total 


Amount 

( 


Par Cent. 


(la OOO'e) 


Graphic Actual 
) 20 40 60 80 100 120 140 




Total 
(Average ) 


405 


$40,576,903 


$2,979,262 


$7.34 


] 


100.0 








Under |2 
$2 to $4 
$4 to $6 
$6 tt over 


72 
131 

86 
U6 


8,020,930 
10,428,302 

7,841,233 
14,286,443 


596,212 

652,319 

496,530 

1,233,651 


7.43 

6.26 
6.33 
8.64 


101.2 
35.3 
86.2 

117.7 


Total 




(Avernga) 




' 










Total 
(Average ) 


112 


3,119,809 


184,127 


5.90 


80.4 






Under 140 


Under $2 
$2 to $4 
ft to J6 
|6 & over 


14 

28 
27 
43 


403,857 

800,159 

723,519 

1,192,274 


18,437 
43,360 
39,748 
82,582 


4.57 
5.42 
5.49 
6.93 


62.3 
73.8 
74.8 
94.4 








j 




Total 
(Average) 


153 


8,672,180 


569,961 


6.57 


89.5 






|40 to |80 


ttader $2 
|2 to *4 
%i to $6 

♦6 8: over 


20 
63 
31 

39 


1,107,291 
3,755,597 
1,653,451 
2,155,341 


58,345 
214,550 
105,559 
191,407 


5.27 
5.71 
6.39 
8.83 


71.8 
77.8 
87.1 
121.0 




; 








; 




Total 
(Average) 


93 


11,411,444 


851,730 


7.46 


101.6 








Under f 2 
»2 to *4 
|4 to \& 

|6 8: ovar 


27 
33 
19 

19 


3,021,911 
3,838,758 
2,392,924 
2,157,851 


211,978 
280,742 
175,671 
132,339 


7.01 
7.31 
7.33 
3.45 


95.5 

99.6 

100.5 

U5.1 


|80 to $180 


1 




■ 








i 




Total 
(Average ) 


42 


17,373,475 


1,373,394 


7.91 


107.8 








Under $2 
»2 to %A, 
|4 to $6 
$6 8c over 


U 

7 

g 

IS 


3,487,871 
2,033,733 
3,071,539 
8,780,477 


307,452 
114,167 
174, 502 
777,273 


8.31 
5.61 
5.68 
3.35 


120.0 
76.4 
77.4 

120.6 


loao & over 










1 


„ 





Average $7.34 



278 



with sales under $40,000, to $7.91 for 
stores with sales of $180,000 and over. 
Moreover, when all the stores are com- 
bined, irrespective of size, for the 
three years, the amounts tend gener- 



ally to increase as the amounts in- 
vested in fixtures per $100 of total net 
sales increase. The same general ten- 
dency, with certain exceptions, also 
holds for the stores classified by size. 



TABLE 194 

TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER 

$100 OF TOTAL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY 

AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919 



Claaelfled 


Amount of 
PlztTU-e Account 

per #100 of 
Total Get Sales 


BoBber 

of 
Store e 


Total 
Het Sales 


Total 
Vages & 
Salaries 


Wages and Salaries per $100 of 
Total Net Sales 


Total 
Het Sales 
(in COO'a) 


Anoont 


Per Cent. 


QrapMo Actual 
5 20 40 60 80 100 120 140 




Total 
(Average) 


135 


♦18,919,233 


tl,345,703 


$7.11 








^^^^^^^ 






ttader (2 
«2 to »4 
♦4 to #6 

♦e at over 


58 
51 
23 
25 


5,228,703 
4,897,266 
3,173,841 
5,619,423 


374,193 
278,735 
216,764 
476,011 


7.16 
5.69 
6.83 
8.47 




100.7 


Total 
(Average) 




1 


96.1 
119.1 












Total 
(Average) 


12 


374,325 


16,031 


4.28 


^^^^^ 


60.2 


Vb&w Uo 


Under (2 
t2 to |4 
»4 to $6 

|6 k over 


2 

4 
S 
3 


62,964 

129,541 

92,703 

89,117 


1,300 
4,969 
6,389 
3,373 


2.06 
3.84 
6.89 
3.78 


89.0 
S4.0 
96.9 
53.3 




■^■^■i 




Total 
(Average ) 


52 


2,967,756 


167,315 


5.64 


79.5 




J 


|40 to (80 


Under $2 
«2 to $4 

ii to $6 
|6 t over 


e 

28 

a 

8 


470,684 

1,658,927 

431, 7:16 

406,419 


22,832 
81,234 
33,427 
29,822 


4.85 
4.90 
7.74 
7.34 


68.S 

68.9 

108.9 

103.2 












Total 
(Average) 


4S 


5,603,210 


413,967 


7.39 


103.9 








Under $2 
(2 to (4 
(4 to (6 


20 

15 

7 


2,217,649 

1,759,679 

836, 118 

789,764 


160,698 

117,275 

69,094 

66,920 


7.25 
6.66 
8.26 
8.47 


102.0 
93.7 

115.2 
119.1 


#80 to |180 






' 














Total 
(Average) 


23 


9,973,942 


748,370 


7.50 


105.5 








Under |2 
$2 to (4 

$4 to $6 
♦6 t over 


8 
4 
5 
6 


2,477,406 
1,349,119 
1,813,294 
4,334,123 


189,363 

75,257 

107,854 

375,896 


7.64 
5.58 
5.95 
8.67 


107.5 
78.5 
88.7 

121.9 


(180 & ever 






; 




; 







Average $7.11 



279 



It may be of interest briefly to call 
attention to this tendency for the 
stores which sold between $80,000 and 
$180,000 worth of goods in any one 
of these years. The average amount 
for the entire group is $7.46. For 



the stores with fixture investment 
less than $2 per $100 of total net 
sales, it is $7.01 and for those with 
a fixture investment per $100 of total 
net sales of $6 or more, it is $8,45. 
Between these limits, the average 



TABLE 195 

TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER 

$100 OF TOT.VL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY 

AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1918 



Classified 

Total 
Bet Sales 
(In oOO'b) 



Amount of 
Fixture Aceonnt 

per ilQO of 
Total Bet Sales 



Total 
Sages k 



nages and Salaries -per llOO of Total Bet Bales 



20 40 60 80 100 120 140 160 



Total 
(Jlveracfl ) 



Under. {40 



Uo to teo 



^0 to $180 



tlBO & over 



Total 
(Average) 



$19,360,146 



$998,985 



$7.48 



Dnder $Z 
$2 to $4 

$4 to $6 
$6 b oTer 



Tot»l 
(Average) 



2,165,476 
3,706,654 
2,807,944 
4,662,071 

1,117,468 



188,851 
242,626 
158,876 
409,628 

64,726 



Dnder $2 
$2 to $4 
$4 to $6 
$6 h over 



124,966 
869,792 
297,192 
425,618 



7,595 
12,531 
14,750 
29,850 



Total 
(Average ) 



3,239,647 



211,586 



Under $2 
$2 to $4 

$4 to $6 

$6 8c over 



434,936 

1,335,132 

779,116 

690,363 



24,785 
81,486 
45,126 
60,187 



Total 
(Average) 



3,298,407 



242,070 



Under $2 
$2 to $4 
$4 to $6 

$6 & over 



£93,109 

1,417,061 

654,591 

633,646 



38,382 

109, 697 
41,854 
52,137 



Total 
(Average) 



5,704,723 



481,601 



Under $2 
|2 to $4 
$4 to $6 
$6 k over 



1,010,465 

684,669 

1,077,045 

2,932,544 



118,089 
38,910 
57,148 

267,454 



8,73 
6.55 
5.66 
8.76 

5.79 



6.08 
4.64 
4.96 
7.01 



6.69 



5.70 
6.10 
5.79 
8.72 



7.34 



6.47 

7.74 
6.39 
8.23 



8.44 



11.69 
5.68 
5.31 
9.12 



100.0 

116.7 
87.8 
75.7 

117.0 

77.^ 

81.3 
62.0 
66.3 
93.7 



87.9 

76.2 
81.6 
77,4 
116.6 



98,1 

86.5 
103.5 

85,4 
UO.O 



112.9 

156,5 
75.9 
71. 

121.9 



Average $7.48 



280 



TABLE 196 

TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER 

$100 OF TOTAL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY 

AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1914 





taionnt of 
Fixture Acconnt 

per tlOO of 
Total Bet Sales 


Htsaber 

of 
Stores 


total 
Net Sales 


Total 
Wages fc 
Salaries 


Wages and Salaries per |100 of 
tstal H«t Sales 


ClABsiried 
Total 


tMoxmt 


fer Cent. 


Set Sales 
(in OOO'a) 


Oraphle Aetaal 
3 20 40 60 80 100 120 140 




Total 
(Average ) 


135 


t8, 297, 530 


♦635,576 


♦7.64 




100.0 






Total 
(Average ) 


Under $2 
»2 to *4 
(4 to $6 
$6 & over 


14 
35 
29 
57 


628,751 
1,824,382 
1,859,448 
3,984,949 


33,168 
131,458 
120,938 
348,012 


5.28 
7.21 
6.50 
8.73 


68.1 

94.4 
85.1 
114.3 














Total 
(Average) 


63 


1,628,016 


105,370 


6.55 


83.1 






Under (40 


Thider (2 
»2 to (4 
(4 to |6 
|6 & over 


8 
16 
13 
S6 


215,927 
400,826 
333,624 
677,638 


9,542 
25,860 
18,608 
49,358 


4.42 
6.45 
5.58 
7.28 


S7.9 
84.4 
73.0 
96.3 












total 


45 


2,464,877 


191,060 


7.75 


101.4 






f40 to ^0 


Oador (2 
»2 to «4 
|4 to (6 
$6 & over 


4 
13 

8 
20 


201,671 

761,538 

442,609 

1,059,058 


10,728 

51,828 

27,106 

101,398 


5.32 
6.81 
6.12 
9.57 


69.6 

89.1 

80.1 

125,5 
















Total 
(Average) 


22 


2,509,827 


195,723 


7.80 


102.1 








Itader t2 
♦2 to U 
«4 to»6 
|6 4 over 


2 
6 

7 
7 


2U,153 
662,018 
902,216 
734,441 


12,898 
53,770 
65,723 
63,332 


6.U 
8.12 
7.28 
8.62 


80.0 
106.3 

95.3 
112.8 


ISO to |180 


















Total 
(Average) 


S 


1,694,810 


143,423 


8.46 


110,7 






|180 & over 


Under (2 
♦2 to »4 
|4 to |6 
t6 at over 


1 
4 


131,000 
1,513,810 


9,500 
133,923 


5.25 
8.85 


68.7 
115.8 







Average 17.64 



281 



amounts increase as the fixture in- 
vestments increase. It should be re- 
membered in this connection, how- 
ever, that identical stores from year to 
year are not included. The sales of 
all the stores in each year, however, 
fall within the limits set up for this 
group, 

A more satisfactory comparison of 
the amounts of wages and salaries 
per $100 of total net sales can be 
made from year to year for stores of 
the same size, but with different fix- 
ture investments in relation to sales. 
Comparisons of this character can be 
made by consulting Tables 194 to 196, 
inclusive, which refer respectively to 
the years 1919, 1918, and 1914. It 
will be remembered that, in the 
analysis of Table 191, the records of 
303 stores for 1919 were used. Table 
194 contains the records of 135 stores 
for the same year, similarly classified. 
Both groups of stores on the whole 
tend to show that the amounts of 
wages and salaries per $100 of total 
net sales increase as the amounts of 
fixtures per $100 of total net sales 
increase. It is true that the stores in 
the two tables are not mutually ex- 
clusive. All of the 135 stores in the 
total-section of Table 194 are included 
in the corresponding part of Table 
191 for 303 stores. The reason for 
selecting two groups of stores was to 
make use of the widest possible ex- 
perience of stores for a single year. 

It is shown in Table 189 that the 
amounts of w^ages and salaries per 
$100 of total net sales decreased from 
1914 to 1918, and from 1918 to 1919. 
Such a condition also holds from year 



to year when these stores are clas- 
sified by size. ]\Ioreover, from year 
to year, on the whole, the amounts 
seem to decrease for stores of the same 
size with given amounts of fixture 
investment per $100 of total net sales. 
It is unnecessary to point out the ex- 
tent of this agreement or the in- 
stances in which it does not hold, in- 
asmuch as the actual amounts are 
shown in the tables in detail and are 
available to the reader for such a 
comparison. 

In the discussion of the amounts of 
selling expense per $100 of total net 
sales, the point was made that fixture 
investments tend on the whole to be 
large in terms of sales where selling 
expenses, in terms of sales, are large. 
A series of tables, 93 to 96, inclusive, 
was presented to show this tendency. 
It is thought to be unnecessary, in 
view of the fact that approximately 
66 per cent, of selling expense is 
chargeable to wages and salaries, to 
show similar tables giving the 
amounts of fixtures per $100 of total 
net sales in stores with different 
amounts of wages and salaries in re- 
lation to sales. The influences which 
determine the relation of fixtures to 
sales for stores with different amounts 
of selling expense, similarly measured, 
would also operate to determine the 
amount of fixtures when the stores 
are classified according to wages and 
salaries in relation to sales. 

The amounts of wages and salaries 
for stores of different sizes and fix- 
ture investments per $100 of total 
net sales, may also be expressed as 
proportionate parts of selling ex* 



282 



TABLE 197 

TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES 

PER $100 OF SELLING EXPENSE, FOR STORES CLASSIFIED BY SIZE AND BY 

AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919 





Amount of 
Fixture Account 

per $100 of 
Total net Sales 


Nuiuter 

of 
Storee 


Total 
Selling 
Expense 


Total 
Wages !c 
Salaries 


Wages and Salaries per $100 of 
Selling Expense 


Claeelfled 

Total 
Net Sales 
(In 000*8) 


Amount 


Per Cent. 


Graphic Actual 
20 40 60 60 100 120 140 




Total 
(Average) 


303 


$3,595,401 


$2,367,501 


$65.65 




100.0 








Under $2 
$2 to $4 
$4 to $6 

$6 i over 


89 
120 
46 
48 


984,379 
1,083,537 

469,533 
1,057,952 


697,444 
673,257 
318,639 
678,161 


70.85 
62.14 
67.86 
64.10 


1 


107.6 
94.4 

103.1 
97.3 


Total 
(Average ) 


1 


; 








I 




Total 
(Average ) 


45 


90,453 


62,748 


69.57 


105.3 




; 




Under $2 
$2 to $4 

$4 to |6 
$6 St over 


10 

16 

9 

10 


14,975 
30,114 
21,226 
24,158 


9,608 
20,320 
16,979 
15,841 


64.16 
67.48 
79.99 
65.63 




Qcder |40 


! 


102.5 




, 
















Total 
(Average) 


115 


463,566 


550,557 


71.31 


108.5 








Under $2 
$2 to $4 

$4 to $6 

$6 8c over 


28 
57 
17 

n 


94,543 

240,121 

92,359 

36,543 


68,619 
166,727 
69,996 
26,215 


72.58 
69.02 
75.79 
71.74 


110.2 
104.8 
115.1 
108.9 


$40 to $eo 


^^^^; 




^y 












Total 
(Average ) 


102 


1,174,364 


784,290 


66.78 


101.4 








Under $2 
$2 to $4 
$4 to $6 

$6 !: over 


36 
36 
15 
15 


401,886 
388,373 
176,478 
207, 627 


278,765 
247,891 
123,810 
133,824 


69.36 
63.83 
70.16 
64.45 


105.3 


$80 to $180 








106.5 
97.9 




' 




1 




Total 
(Average) 


43 


1,867,018 


1,189,906 


63.73 


96.8 








Under $2 
$2 to $4 
$4 to $6 
$6 !t over 


15 
11 
5 

12 


472,975 
424,929 
179,470 
789,644 


340,452 
239,319 
107,854 
502,281 


71.98 
56.32 


109.3 
05.5 
91.5 


$180 & over 






: 






: 









Average $65.65 



283 



TABLE 198 

TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES 

PER $100 OF SELLING EXPENSE, FOR 135 IDENTICAL STORES CLASSIFIED BY 

SIZE AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL 

NET SALES, 1919, 1918, AND 1914, COMBINED 





Amormt of 
Fixture Aocount 

per $100 of 
Total Hot Sales 


Bumber 

of 
Store- 
years 


Total 
Selling 
Bzponse 


Total 
Wages & 
Salaries 


Wages and Salaries p«r #100 
of Selling Expense 


Total 
■•t Biaos 
(In 000'«) 


Anotmt 


fer Cent. 


Oraphlo Actual 
) 20 40 60 80 100 120 




Total 
(Average) 


405 


14,428,098 


♦2,979,262 


♦87.28 




lOO.O 




1 




Xhider $2 
»2 to »4 
f4 to ^6 
#6 Je over 


72 

131 

86 

116 


832,922 

985,648 

796,319 

1,811,209 


596,212 

652,819 

496,580 

1,853,661 


71.58 
66.25 
62.20 
68.U 


106.4 
93.4 
92.4 

101.8 


Total 
(ATeraga ) 


! 




: 




1 








Total 
(Average) 


112 


263,714 


184,127 


69.82 


103.3 








Dtader |2 
#2 to U 
U to t6 
♦6 k over 


14 

28 
87 
43 


85,981 

64,602 

58,106 

115,086 


18,437 

43,360 
39,748 
82,582 


71.13 
67.12 
68.41 
71.76 


105.7 

99.8 

101.7 

106.7 


Older #40 


; 




^^^^1 




; 




; 




Total 
(Average) 


153 


806,361 


569,961 


70.68 


105.1 








IJnder |2 
f>2 to «4 
*4 to *6 
#6 k over 


20 
63 
51 
59 


78,674 
314,078 
158,148 
255,461 


58,345 
814,550 
105,659 
191,407 


74.16 
68.31 
66.81 
74.95 


110.2 

101.5 

99.3 

111.4 


|40 to |80 










; 




; 




Tbtal 
(Average) 


96 


1,253,879 


861,780 


67.93 


101.0 








uader #2 
|2 to |4 
»4 to le 

t6 II over 


27 
53 
19 
19 


307,174 
405,623 
274,227 
266,855 


211,978 
280,742 
176,671 
182,369 


69.01 
69.21 
64.43 
68.35 


102.6 

102.9 

95.8 

101.6 


|80 to «180 










1 




; 




Total 
(Average) 


42 


£,104,144 


1,373,394 


65.87 


97.0 




1 




Va&or #2 
♦2 to U 

U to to 

#6 & over 


U 
7 
9 

15 


481,153 

201,345 

307,839 

1,173,807 


307,452 
114,167 
174,502 
777,873 


73.00 
56.70 
66.69 
66.22 


103.5 
84.9 
84.3 
98.4 


tlao h over 






1 




; 




^^^^^^' 



Average t67.8d 



284 



pense. This is done for 1919 in Table 
197 and for the years 1919, 1918, and 
1914, combined and individually, in 
Tables 198 to 201, inclusive. 

In 1919, for the 303 stores the 
records of which are available, wages 
and salaries constituted $65.85 out of 
every $100 of selling expense. As the 
stores increase in size, however, this 
amount becomes a relatively smaller 
proportion. The amount for stores 
having sales of $180,000 and over is 
$63.73, or 96.8 per cent, of the aver- 
age. Within each group of stores, 
when classified by size, there seems to 
be no definite tendency for the 
amounts of wages and salaries per 
$100 of selling expense to increase or 
decrease with the amounts invested 
in fixtures per $100 of total net sales. 
Moreover, the variations in the actual 
amounts from store-group to store- 
group in stores of the same size are 
not large. 

Table 198 shows the amounts of 
wages and salaries per $100 of sell- 
ing expense for 135 stores for the 
combined years 1919, 1918, and 1914. 
For these years, wages and salaries 
constitute $67.28 of each $100 of sell- 
ing expense. Moreover, for the com- 
bined years, the amounts generally 
become smaller proportionate parts 
of selling expense as the stores in- 
crease in size. In other words, what 
is true for 1919 alone is also true for 
a number of identical stores for the 
three years combined. When the 
stores for the combined years are 
classified by size, there seems to be 
no clear tendency for the amounts of 
wages and salaries per $100 of sell- 



ing expense, in stores of the same 
size, either to increase or to decrease 
regularly as the amounts invested in 
fixtures per $100 of total net sales in- 
crease. Here, again, the experience 
for a limited number of stores for the 
three years combined is similar to that 
for 1919 when a larger store experi- 
ence is used. 

In Tables 199 to 201, inclusive, the 
amounts of wages and salaries per 
$100 of selling expense are shown for 
the years 1919, 1918, and 1914, re- 
spectively, for the stores classified by 
size and by their fijcture investments. 
Attention was called in Table 185 to 
the fact that the amounts of wages 
and salaries per $100 of selling ex- 
pense increased between 1914 and 

1918, and decreased between 1918 and 

1919. The tendency from year to 
year for stores of the same size, as 
shown in these tables, is uncertain. 
The actual amounts are contained in 
the table and anyone who is inter- 
ested may compare them for himself. 

C. — Yearly Amounts^ of Wages and 
Salaries per $100 of Total Net 
Sales, for Stores Classified hy 
Amounts of Inventory per $100 
of Total Net Sales, 1919. 

In the foregoing discussion, the 
bases of classification have been years, 
size of store, and fixture investment 
per $100 of total net sales. In Table 
202, an additional basis of classifica- 
tion is used for a group of 282 stores 
for 1919. No cognizance, however, is 
taken of store size. The stores are 
classified according to the amounts 
of inventories which they had at the 



285 



TABLE 199 

TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES 

PER $100 OF SELLING EXPENSE, FOR 135 STORES CLASSIFIED BY SIZE 

AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF 

TOTAL NET SALES, 1919 





Amoiint of 
Fljct'ire Acco'int 

per tlOO of 
Total Net Sales 


Nurober 

of 
Stores 


Total 
Selling 

Expense 


Total 
Wages & 
Salaries 


Wages and Salaries per $100 
of Selling Expense 


Claeslfleil 

Total 
Net Sales 
(In OOO'b) 


Amount 


Per Cent. 


Graphio Aet^^ 
3 20 40 60 80 100 120 140 




Total 
(Average) 


155 


$1,992,510 


$1,345,703 


467.54 




100.0 








Dnder $2 
iz to U 

$4 to $6 
$6 k over 


38 
51 
23 
2S 


535,252 
428,443 
526,474 
702,161 


374,193 
278,755 
216,764 
476,011 


69.91 
65.06 
66.40 
67.79 


103.5 
96.5 
98.3 

100.4 


Total 
(Average) 












' 




Total 
(Average) 


12 


24,945 


16,051 


64.27 


95.2 


Dnfler ^40 


Under $2 
$2 to $4 
$4 to $6 
$6 & over 


2 
4 

5 
5 


5,398 
8,215 
7,582 
5,752 


1,300 
4,969 
6,389 
S,87S 


38.26 
60.50 
84.27 
58.64 


', 


56.6 
89.6 
124.8 
86.3 












'. 




Total 
(Average ) 


52 


229,272 


167,315 


72.98 


108.1 








Under $2 
$2 to $4 
$4 to $6 
$6 S: over 


e 

28 
8 
8 


29,693 
118,454 
45,053 
38,072 


22,832 
81,234 
33,427 
29,822 


76.89 
68.58 
77.54 
78.33 


113.8 
101.5 
115.0 
116.0 


$40 to $80 


















Total 
(Average ) 


48 


587,583 


413,987 


70.46 


104.3 








Dnder $2 
$2 to $4 

$4 to $6 
$6 & over 


20 

15 

7 

6 


226,744 

168,668 

96,569 

95,602 


160,698 

117,275 

69,094 

66,920 


70.87 
69.53 
71.70 
69.83 


104.9 
102.9 
106.2 
103.4 


$80 to $180 














] 




Total 
(Average) 


25 


1,150,510 


748, 570 


65.05 


96.3 




Under $2 
$2 to $4 
iA to *6 
$6 k ovor 


8 

4 
5 
6 


275,397 
133, 108 
179,470 
562,535 


169,363 

75,257 

107,854 

575,896 


68.76 
56.54 
60.10 
66.83 




101.8 
83.7 
89.0 
98.9 


♦iSO & over 

















Average $67.54 



286 



TABLE 200 

TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES 

PER $100 OF SELLING EXPENSE, FOR 135 STORES CLASSIFIED BY SIZE 

AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OP 

TOTAL NET SALES, 1918 





Amount of 
Plxtilre Account 

per $100 of 
Total Net Sales 


Kumtier 

of 
Stores 


Total 
Selling 
Expense 


Total 
Wages & 
Salaries 


V(ages and Salaries per $100- of 
Selling Expenso 


Classified 

Total 
Not Sales 
(la OOO's) 


Aaount 

< 


Per Cent. 


Graphic Actual 
) 20 40 60 80 100 120 




Tcjtal 
(Average ) 


135 


$1,473,360 


$999,983 


$67.87 




100. 








Under $2 
$2 to $4 
$4 to $6 
$6 & over 


20 
45 
34 

35 


244,748 
370,532 
267,521 
590,559 


188,851 
242,626 
158,878 
409,628 


77.16 
65.48 
59.39 
69.36 


113.7 

96.5 

87.5 

102.2 


Total 
(Average) 


: 


: 








• 




Total 
(Average ) 


37 


92,371 


64,726 


70.07 


103.2 




1 




Under $2 
$2 to $4 
$4 to $6 
$6 & over 


4 

3 

U 

14 


9,959 
19,976 
23,674 
38,762 


7,595 
12,531 
14,750 
29,850 


76.26 
62.73 
62.30 
77.01 


112.4 

92.4 

91.8 

113.5 


ttlder |40 






: 












Total 
(Average) 


56 


299,694 


211,586 


70.60 


104.0 








Under $2 
$2 to |4 
$4 to $6 

|6 & over 


8 
22 

15 
11 


33,916 

121,256 

65,956 

78,667 


24.785 
81,433 
45,126 
60,187 


73.08 
67.20 
68.42 
76.61 


107.7 

99.0 

100 .8 

112.9 


#40 to $80 






1 








t 
1 




Total 
(Avera.go) 


28 


363,676 


242,070 


66.56 


98.1 




1 




ttadar $2 
♦2 to $4 
$4 to $6 

$6 fc over 


6 
12 

S 
6 


55,117 

161,063 

67,483 

80,013 


38,332 

109,697 

41,854 

52,137 


69.64 
68. U 
62.02 
65.16 


102.5 

10O.4 

91.4 

96.0 


♦so to $180 






1 




; 




; 




Total 
(Average) 


14 


717,619 


481,601 


67.11 


93.9 








UOder $2 
$2 to |4 

$4 to |6 
$6 4 over 


3 
3 
3 
5 


145,756 

63,237 

110,409 

393,217 


118,089 
38,910 
57,143 

267,454 


81'.02 
57.02 
51.76 
68.02 


119.4 

84.0 

76.3 

100.2 


#180 as OTer 










. 



Average $67,87 



287 



close of 1919 and, further, by their 
fixture investment per $100 of total 
net sales. Two methods of measuring 
'wages and salaries are used : first, in 
terms of sales, and second, in terms 
of sales per stock turnover. This 
table merits consideration. It should 
be remembered that the larger the 
store, generally speaking, the smaller 
the inventory and the larger the stock 
turnover. Keeping this fact in mind, 
the attention of the reader is called 
to the details of the table. 

For stores which had inventories at 
the close of 1919 of less than $20 per 
$100 of total net sales, it cost in wages 
and salaries $5.64 to sell $100 worth 
of goods. For those that had inven- 
tories of $20 to $40, it cost $7.05, and 
for those that had inventories of $40 
and over, the amount was $6.07. 
Within each group of stores having 
these inventories, the table also shows 
the amounts of wages and salaries per 
$100 of total net sales for stores 
having different fixture investments 
in relation to their sales. When the 
stores are classified in this form, there 
is a general but not uninterrupted 
tendency for the amounts to increase 
with the fixture investments. The ir- 
regularity may be due to the size of 
the store, the rapidity of the stock 
turnover, and the widths of the groups 
used in the classification of the inven- 
tories. The actual amounts, how- 
ever, are of interest in spite of the 
fact that they do not regularly in- 
crease. 

Table 202 also contains the amounts 
of wages and salaries expressed in 
terms of sales per stock turnover. As 



the business of these 282 stores is 
transacted, it costs $6.67 in wages 
and salaries to sell $100 worth of 
goods. When the amount is divided 
by the average turnover, it becomes 
$3.03. As the inventories increase, 
the amounts of wages and salaries per 
$100 of total net sales per stock turn- 
over also increase. The average 
amount for the stores having inven- 
tories of less than $20 per $100 of 
total net sales is $1.28 and for those 
with inventories of $40 and over per 
$100 of total net sales, $4.34. For the 
group of stores with inventories of 
less than $20 per $100 of total net 
sales, the data are inadequate to an- 
swer the question whether wages and 
salaries per $100 of total net sales 
per stock turnover increase or de- 
crease with the amount invested in 
fixtures per $100 of total net sales. 
For the other two groups of stores, 
when classified by inventories, the 
data reveal a general tendency for 
the amounts to increase as the invest- 
ments in fixtures increase. That is, 
for stores with a given amount of in- 
ventory, it costs more in wages and 
salaries per $100 of total net sales per 
stock turnover to sell a given amount 
of goods when fixture investments are 
large in relation to sales, than when 
they are small. 

The significance of Table 202 to the 
merchant is clear in certain respects. 
It indicates the value of low inven- 
tories and high turnover as a means 
of reducing the cost of wages and sal- 
aries in relation to sales. Moreover, 
it also emphasizes the fact that wages 
and salaries are relatively low in 



288 



TABLE 201 

TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES 

PER $100 OP SELLING EXPENSE, FOR 135 STORES CLASSIFIED BY SIZE 

AND BY AMOUNT OP FIXTURE ACCOUNT PER $100 OF 

TOTAL NET SALES, 1914 





Amount of 
Fixture Account 
' per $100 of 
Total Net Sales 


Ranber 

of 
Stores 


Total 
Selling 
Expense 


Total 
Wa^3 Sc 
Salaries 


nages and Salaries per |100 of 
Selling Expense 


Classified 
Total 


Amount 


Per Cent. 


Bet Salea 
(In 000'») 


Graphic Actual 
20 40 60 80 100 120 




Total 
(Average ) 


155 


1962,428 


$633, 576 


$65.83 




100.0 








Under $2 
(2 to $4 

$4 to $6 
$6 & over 


14 
56 

29 
57 


52,942 
166, 673 
204,324 
516,489 


33,168 
131,458 
120,938 
548,012 


62.65 
70.42 
59.19 
67.12 


: 


95.2 
107.0 

89.9 
102.0 


Total 
(Average) 
















Total 
(Average) 


63 


146,398 


103,370 


70.61 


107.3 








Under fS 
|2 to |4 
H to |6 
f 6 & over 


8 
16 
13 
26 


12,564 
56,413 
26,849 
70,572 


9,542 
25,860 
18,609 
49,359 


75.95 
71.02 
69.31 
69.94 


115.4 
107.9 
105.3 
106.2 


Qbder |40 


i 
















Total 
(Average) 


45 


277,396 


191,060 


68.88 


104.6 




] 




Under #2 
(2 to U 
|4 to |6 

$6 i over 


4 
13 

8 
20 


15,065 
74,368 
49,140 
138,822 


10,728 

51,828 

27,106 

101, 398 


71.21 
69.69 
55.16 
78.04 


108.2 

105.9 

83.8 

111.0 


#iO to leo 






; 




; 




: 




Total 
(Average ) 


22 


302,620 


195,723 


64.68 


98.3 




: 




Under $2 
»2 to $4 
$4 to $6 

$6 k over 


2 
6 

7 
7 


25,313 

75,892 

110,375 

91,040 


12,898 
53,770 
65,723 
63,332 


50.95 
70.85 
59.55 
69.57 


77.4 

107.6 

90.5 


leo to 1180 




















Total 
(Averape ) 


5 


236,016 


143,423 


60.77 


92.3 


llSO & over 


Ibder $2 
$2 to U 
$4 to $6 
$6 8c over 


1 

4 


17,960 
21fl,065 


9,500 
133,923 


62.90 
61.42 


i 


80.4 
93.9 




1 







Average t6S.8S 



289 



TABLE 202 

AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER STOCK TURN- 
OVER, FOR STORES CLASSIFIED BY AMOUNT OF IN\^NTORY PER $100 OF 
TOTAL NET SALES AND BY AMOUNT OF FIXTURE ACCOUNT 
PER $100 OF TOTAL NET SALES, 1919 



p«r tlOO of 
lit Sales 



Ajsount ct 
Plxturo Account 

per tlOO of 
tottiX Hot Salea 



<"'•«'"« |*otu«l 
V) 60 60 100 120 140 



20 40 60 89 100 lap 140 160 1^ 



Under |2 
»2 to»* 
|4 to t6 
(6 k over 



Under $2 
t2 to t4 

*4 to te 

tik cvar 



Coder Is 
«2 to »4 
t* to |C 

$6 h over 



<i7 



Under fz 
*2 to t* 
(4 to t6 
$6 k over 



te.er 



6.76 
S.B3 

e.es 

7,77 



4.5S 
4.S2 

e.i£ 



7. OS 



7.12 
6.20 

6.89 

e.u 



6.07 



4.47 
S.62 
7.72 
6.71 



100.0 



XOl.S 
87.4 
108.4 

lie. 6 

S4.6 



102.2 
68.2 
72. S 
91.8 



106.7 



106.7 
93.0 
103.3 
122.2 



ei.o 



67.0 
84.3 
119.7 
lOO.e 



ts.os 



2.32 
2.78 
S.2S 
3. S3 



1.62 
0.9S 
0.96 
1.97 



.94 



2.97 
2.70 
3.13 

s.oa 



4.3* 



3.19 
5.7S 
B.IS 
?.16 



ATerae9 |6.CT 



Iverago $3.03 



100.0 



93.1 
91.7 

107.J 
U6.S 



ss.e 

30.7 
31.7 
66.0 



97.0 



98.0 
89.1 
103.3 
09.7 



143.2 

US.S 
12>.3 
170.0 
ITO.S 



terms of sales per stock turnover when 
fixture investments in relation to 
sales are kept at a minimum. 

D. — Summary. 

(1). For stores of a given size and 
with a given amount invested 
in fixtures per $100 of total 
net sales, the amounts of 
wages and salaries per $100 of 
total net sales tend generally 
to decrease from year to year. 
The direction of change is un- 



certain for wages and salaries 
per $100 of selling expense. 

(2). When the stores are classified 
by size, the amounts of wages 
and salaries per $100 of total 
net sales tend to increase as 
the amounts of investment in 
fixtures per $100 of total net 
sales increase. 

(3). When stores are classified by 
size, the amounts of wages 
and salaries per $100 of sell- 



290 



ing expense tend neither to 
increase nor to decrease as the 
investments in fixtures in 
terms of sales increase. 

(4). For stores with a given 
amount of inventory per $100 
of total net sales, the amounts 
of wages and salaries in 
terms of sales alone, increase 
as the investments in fixtures 
in terms of sales increase. 
Moreover, the amounts of 
wages and salaries per $100 
of total net sales per stock 
turnover increase as the fix- 
ture investments in terms of 
sales increase. 

(3) — YEARLY AMOUNTS OP WAGES AND 
SALARIES IN RELATION TO INVEST- 
MENTS IN FIXTURES PER 100 
SQUARE FEET OF FLOOR SPACE. 

In the foregoing discussion, stores 
have been classified by the amounts 
invested in fixtures per $100 of total 
net sales. In this section the stores 
are classified by the amounts invested 
in fixtures per 100 square feet of floor 
space. 

A. — Yearly Amounts of Wages and 
Salaries per $100 of Total Net 
Sales and per $100 of Selling 
Expense, for Stores Classified hy 
Size, 1919. 

The records of 303 stores are avail- 
able for study in order to determine 
the amounts of wages and salaries per 
$100 of total net sales and per $100 
of total net sales for the amounts sold 
per square foot of floor space for 



stores classified by size and by the 
amounts invested in fixtures per 100 
square feet of floor space. The clas- 
sification of stores in this form is con- 
tained in Table 203. 

For stores of the same size, but with 
varying amounts of fixture invest- 
ments in relation to floor space, the 
amounts of wages and salaries per 
$100 of total net sales on the whole 
tend to increase with the investment 
in fixtures measured in this form. 
There are exceptions to this rule, but 
on the whole the same tendency which 
was encountered for selling expense 
obtains for wages and salaries. When 
the amounts of wages and salaries, 
however, are expressed in terms of 
sales for the amount sold per square 
foot of floor space, they decrease gen- 
erally with the investment in fixtures 
per 100 square feet of floor space. 
That is, the high cost in wages and 
salaries in relation to sales which ac- 
companies large investment in fix- 
tures per unit of floor space are com- 
pensated for by the amounts sold. 
The disadvantage which accrues to 
the stores with large fixture invest- 
ments is in fact an advantage in terms 
of the use to which the space is put. 
In view of the discussion of selling 
expense, pages 164 to 170, it is un- 
necessary further to consider wages 
and salaries for stores classified in 
this form. 

In Table 204 the amounts of sales 
for each $100 of wages and salaries 
paid are shown for stores classified as 
in Table 203. As the stores increase 
in size, relatively smaller sales are 
secured for a given amount of wages 



291 



TABLE 203 

AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER SALES PER 

SQUARE FOOT OF FLOOR SPACE, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF FIXTURE ACCOUNT PER 100 SQUARE FEET OF FLOOR SPACE, 1919 



ClasEiriod 
Total 


Amount of 

Fixture Account 

per 100 sq. ft. 

of 

Floor £^pace 


lluniber 

of 
St ore B 


Hageo and Salaries per $100 of 
Total Net Sales 


(ages and Salarlee per ilOO of Total Net Sales 
per Sales per Square Foot of Floor Space 


Anount 

< 


Per Cent. 




Per Cent. 


(In CCO's) 


Graphic 1 ^^t„.i 
3 20 40 60 60 100 120 140 


Anount 




'^'•»I*1'= 1 Actual 
20 40 60 80 100 120 140 




Total 
(AvernKO) 


303 


$6.54 


. 


100.0 






100.0 












Under 440 
$40 to teo 

|80 to $120 
$120 fc over 


74 

105 
65 
61 


6.01 
6.50 
6.56 
6.83 




91.9 
99.4 
100.3 
104.4 






150.6 
115.4 
92.5 
73.1 


Total 
(AverLpe) 






' 












0.19 


• 








Total 
<Averane) 


4S 


4.48 




68.5 


0.31 




119,2 








Under t40 
^0 to Sao 

$80 to 5120 
$120 1 over 


11 
24 
S 
7 


3.69 
4.62 
6.50 
4.45 


^— 


54.9 

70.6 
96.3 
68.0 


0.37 
0.30 
0.44 
0.19 




142.5 
115.4 
169.2* 
73.1 


Uniler ^40 










• 






Total 
(Averaee) 


113 


5.09 


', 


77.8 


0.27 




105.6 








Under $40 
$40 to $80 
$80 to $120 

$120 & over 


33 
42 
23 
IS 


4.71 
4.54 

5.49 
6.82 


' 


72.0 

69.4 
85.6 
104.5 


0.52 

0.23 
0.25 
0.37 




les.i 
ee.s 

88.5 
142.5 


iiO to tSO 


1 




: 






: 










Total 
(Average) 


102 


6.54 


100.0 


0.28 


107.7 




: 






Unde- $40 
$40 to $80 
$80 to $120 

$120 4 ovor 


22 
55 

29 
18 


6.57 
6.72 
6.50 
6.?S 


100.5 
102.6 
99.4 
95.6 


0.36 
0.30 
0.25 
0.19 


■ 


.158.5 
115.4 
96.2 
73.1 


.>o to Cieo 
























Total 
(Averare ) 


45 


7.30 




111.6 


0.21 


' 












Onder $40 
$40 to $80 
Ceo to tl20 

S120 t over 


6 

6 

e 

21 


6.85 
9.11 
7.29 
7.02 




104.4 
159.3 
111.^ 
107.5 


0.29 
0.31 
0.21 
0.17 




111.5 


.1£0 :: over 





























AlU'Cgv $6.54 



Average $0.26 

"pull length DOt flhoiro 



and salaries paid. Moreover, for 
stores of the same size, but with dif- 
ferent investments in fixtures in re- 
lation to floor space, the amounts of 
sales secured for each $100 of wages 
and salaries decrease as the fixture 
investments increase. The amounts 



secured for a given wage payment are 
shown in Table 204, and the relation- 
ship obtaining between them may be 
observed by consulting the graphic 
part of the table. 

In Table 205 the amounts of wages 
and salaries are expressed, first, in 



292 



terms of selling expense, and second, 
in terms of selling expense for the 
amounts sold per square foot of floor 
space,* The basis of classification for 
the stores is the same as in Tables 203 

* The method by which this unit is com- 
puted is explained on page 4, item 26. 



and 204. Moreover, the same stores 
are used for purposes of analysis. 
Within each group, when classified by- 
size, the details show that there is no 
general tendency for the amounts 
either to increase or to decrease as 
the fixture investments in relation to 



TABLE 204 

WAGES AND SALARIES, TOTAL NET SALES, AND AMOUNT OF TOTAL NET SALES PER $100 

OF WAGES AND SALARIES, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF FIXTURE ACCOUNT PER 100 SQUARE FEET OF FLOOR SPACE, 1919 



Classlflad 


Amount of 
Fixture Account 
per 100 eq. ft. 
of Floor Space 


Number 

of 
Stores 


Total 
Vagee & 


Total 
■et Balee 


Total Hot Sales per $100 of Wages and Salaries 


Total 
Net Salts 
(InOOO'a) 


( 


Per Cent. 


> 20 40 60 80 100 120 140 160 XBO 200 




total 
(ATerage) 


903 


$2,367,501 


$36,193,716 


$1,529 




100.0 








ttodar $40 
$40 to $80 
$80 to $120 

$120 fc over 


74 
105 
69 
61 


409,649 
S9S,U1 
466,200 
696,541 


6,814,481 
9,151,557 
7,104,069 
19.123,611 


1,663 
1,538 
1,524 
1,464 




Total 
(Arerags ) 




100.6 






^^^^^1 






; 






total 
(ATorags) 


45 


62,748 


1,399,886 


2,251 


145.0 








DoOsr $40 
$40 to $80 
$80 to $120 

$120 fc over 


U 
24 
S 

7 


10,669 
95,769 
6,718 
10,592 


297,455 
773,554 
90,727 
236,150 


2,788 
2,163 
1,587 
2,248 


'. 


182.3 
141.5 
103.8 
147;o 


Ohder $40 










■ 




\ 




total 
(Average) 


113 


330,557 


6,500,336 


1,966 


128.6 








Itader $40 
$40 to $80 
$80 to $120 

$120 k over 


93 

42 
23 
IS 


67,981 
108,795 
76,467 
57,314 


1,6^,728 
2,598,605 
1,593,751 
" 640,252 


2,123 
2,205 
1,823 
1,466 


138.8 
144.2 
119.2 
95.9 


$40 to $80 


















Total 
(AveroKe ) 


102 


784,290 


11,986,562 


1,528 


99.9 








(kidar $40 
$40 to $80 
$80 to $120 

$120 k oTor 


22 
S3 

29 

IS 


167,538 
265,530 
211,240 
139,982 


2,548,246 
3,949,140 

9,250,636 
2,238,340 


1,521 
1,487 
1,559 
1,599 




«9.5 

97.5 
100.7 
104.6 


580 to SlBO 






1 












Total 
(AvoraRo) 


43 


1,189,906 


16,507,154 


1,370 


89.6 




: 




under $40 
$40 to 580 
$80 to $120 

5120 i over 


8 
6 

e 

21 


143,461 
185,017 
172,775 
688,653 


2,101,052 
2,050,058 
2,368,955 
9,307,069 


1,465 
1,097 
1,371 
1,424 


95.8 
71.7 
69.7 
93.1 


Cl80 i over 






; 




_ 



Average tl,ae9 



293 



TABLE 205 

AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER SALES PER 

SQUARE FOOT OF FLOOR SPACE, FOR STORES CLASSIFIED BY SIZE AND 

BY AMOUNT OF FIXTURE ACCOUNT PER 100 SQUARE 

FEET OF FLOOR SPACE, 1919 





Arount of 
Fixture Aeco'int 
por 100 oq. ft. 
of Floor Space 


MUBber 

of 
Stores 


Wages ajvl Salaries per $100 of 
Selling Expense 


Wages and Salaries per $100 of Selling Expense 
per Sales per &i'iare Foot of Floor Space 


Total 


AsDunt 


Per Cent. 


Amount 

( 


Per Cent. 


(in 000'«) 


"^•P"" 1 Actual 
3 20 40 60 80 100 120 14o' 


QrapUlo 1 . ^ . 
'^ 1 lotual 
20 40 60 80 100 120 140 160 180 200 ' 




Itotal 
(Average ) 


JOS 


$65.85 




100. 


$2,59 




100.0 










Dnaer $40 

#40 to $80 

Sao to $120 

Jl20 k over 


74 
105 
6J 
61 


70.58 
68.17 
67.35 
61<e2 


107.2 
lOJ.S 
103.0 
93.6 


4.00 
3.10 
2.49 
1.69 


154.4 
U9.7 
96.1 
6S.S 


Total 
(Average) 


















: 




Total 
f Avorago ) 


4S 


69.37 


105.3 


4.84 


166.9 










tliiaor $40 
C40 to $80 

Sao to $120 
Sl20 k over 


U 
24 
S 

7 


64.68 
71.14 
65.24 
62.42 


98.2 
108.0 
129.4 

94.8 


6.61 
4.67 
8.92 
2.67 


255.2- 
180,3 
228.6-' 
105.1 


Onder $40 


"^^^1 


















i 






Total 
fAvsrage) 


US 


71.31 


108.5 


3.82 


147.5 










Dnder $40 
»40 to $80 
580 to $120 

$120 i over 


S3 
42 
23 
IS 


69.M 
70.61 
70.31 
77.04 


105.8 
107.2 
106.8 
117.0 


4.66 
3.50 
2.97 
4.14 




179,9 
135.1 
114.7 
159.8 


$40 to $80 


Hill ^ 






1 IIHI lljl 


'^'"'"^"' 










i 


; 




Total 
(Average ) 


102 


66.78 


101.4 


2.85 


110.0 










Dnler $40 
$40 to $80 
$80 to $120 

$130 & over 


22 
33 

29 


72.25 
64.75 
63.63 
62.31 


109.7 
98.3 

104.2 
94.6 


3.98 
2.90 

2.69 
1.86 


1S3.T 
112.0 
103.9 


$80 to tlSO 


; 














t 




I 






Total 
(Average ) 


43 


63.73 


96.8 


1.82 












Ooder $40 
^ to $80 
$80 to $120 

$120 & over 


6 
6 
9 
21 


69.73 
71.58 
65.49 
60.46 




105.9 
108.7 
99.5 
91.8 


3.00 
2.46 
1.89 
1.46 






$180 i oter 


^■^^^^^"f 












T9.0 






86.4 



Average ^e&.8& 



Avor^s^ tS.Sa 



FuXL leseUi not ebown 



floor space increase. The actual 
amounts, however, are of interest be- 
cause they establish the average con- 
ditions existing for 1919 for these 
groups of stores. When wages and 
salaries in their relation to selling ex- 
pense are determined for the amounts 
sold per square foot of floor space, 
they decrease as the amounts invested 



in fixtures increase. There are certain 
exceptions to this rule, but on the 
whole it obtains with rather more 
striking regularity than might be ex- 
pected. The actual amounts and their 
relation to each other for the stores 
as classified may be seen by consult- 
ing the table. 



294 



B. — Summary. 

(1). Wages and salaries in terms 
of sales alone are relatively 
high for stores having large 
investments in fixtures per 
100 square feet of floor space. 

(2). The amounts are relatively 
low, however, when they are 
expressed in terms of sales 
for the amounts sold per unit 
of floor space. 

(3). The amounts of wages and 
salaries as proportionate parts 
of selling expense tend neither 
to increase nor to decrease 
generally for stores with in- 
creasing amounts invested in 
fixtures per unit of floor 
space. 

(4). When the amounts are ex- 
pressed in terms of selling ex- 
pense for the amounts sold on 
each unit of floor space, they 
decrease as fixture investment, 
similarly measured, increase, 
thus suggesting the practical 
conclusion that high fixture 
investments in relation to 
floor space operate to dimin- 
ish relatively the amounts 
which wages and salaries con- 
stitute of total selling ex- 
pense. 

5. YEARLY AMOUNTS OF WAGES AND 
SALARIES IN RELATION TO EXPENDI- 
TURES FOR ADVERTISING FOR STORES 
CLASSIFIED BY SIZE, BY LOCATION, 
AND BY RATES OF STOCK TURN- 
OVER. 

The order of the discussion of the 
amounts of total selling expense, for 



stores classified by amounts of ad- 
vertising, is followed closely in the 
treatment of wages and salaries per 
$100 of total net sales and per $100 of 
selling expense for stores similarly 
classified. 

A. — Yearly Amounts of Wages and 
Salaries per $100 of Total Net 
Sales and per $100 of Selling 
Expense, for Stores Classified hy 
Size, 1919. 

In the analysis of the amounts of 
wages and salaries per $100 of total 
net sales and per $100 of selling ex- 
pense, the records of 282 stores for 
1919 are available for study. The 
stores are classified by size and by the 
amounts of advertising expenditure 
per $100 of total net sales. 

In Table 206 the amounts are ex- 
pressed first, in terms of sales, and 
second, in terms of sales per stock 
turnover.* For the 282 stores it cost 
$6.67 in wages and salaries to sell 
$100 worth of goods. For the 79 
stores which spent in advertising less 
than $1 per $100 of total net sales, 
the corresponding cost was $5.93. 
From this amount as a minimum, the 
costs increase to $7.57 for the 66 
stores which spent between $2 and $3 
in advertising per $100 of total net 
sales. For those which spent more 
than this amount, treated as a total, 
the cost was $6.61. As the stores in- 
crease in size, the amounts of wages 
and salaries per $100 of total net sales 
increase. This condition holds not 
only for the stores treated as totals, 

* The method by which this unit is derived 
is explained on page 4, item 20. 



295 



but for stores when classified by the 
amounts expended for advertising per 
$100 of total net sales. The increase 
in the latter respect is in some in- 
stances irregular, due primarily to 
the small number of stores involved. 

When the amounts of wages and 
salaries for the stores as classified are 
measured in terms of sales per stock 
turnover, the average for the entire 
group is $3.03. For those which spent 
under $1 in advertising per $100 of 
total net sales, it is $2.82, and from 
this amount as a minimum the 
amounts increase to $3.29 for the 66 
stores which spent in advertising per 
$100 of total net sales, between $2 
and $3. For those that spent $3 and 
over, the corresponding cost is $2.75. 
For each group of stores classified by 
size, the amounts of wages and sal- 
aries per $100 of total net sales per 
stock turnover increase as the amounts 
spent in advertising per $100 of total 
net sales increase. There are some 
exceptions to this rule, however, the 
size and nature being shown in actual 
amounts and in graphic form in the 
columns of the table under this cap- 
tion. 

Attention has already been called 
to the fact that wages and salaries per 
$100 of total net sales per stock turn- 
over increase as stores increase in 
size for the stores selling less than 
$180,000 annually, and decrease for 
those selling in excess of $180,000. It 
is unnecessary from this point of view 
to discuss Table 206. 

In Table 207 the same 282 stores 
are classified as in Table 206, but the 
amounts of wages and salaries are ex- 



pressed in terms, first, of selling ex- 
pense, and second, in terms of selling 
expense per stock turnover. For the 
entire group treated as a whole, wages 
and salaries constitute $65.67, or 
roughly two-thirds of each $100 of 
selling expense. As the stores in- 
crease in size the amounts decrease, 
the range being from $71.92 for stores 
with sales of $40,000 to $80,000 to 
$62.93 for stores with sales of $180,- 
000 and over. Within each group of 
stores and for the total, the amounts 
spent for wages and salaries, meas- 
ured in terms of selling expense, de- 
crease as the amounts of expenditure 
for advertising in terms of sales in- 
crease. This condition is to be ex- 
pected in view of the fact that wages 
and salaries and advertising, com- 
bined, constitute, on the average, ap- 
proximately 88 per cent, of selling ex- 
pense. It will be noted, however, that 
the amounts of advertising are ex- 
pressed in sales, while wages and 
salaries are measured in terms of sell- 
ing expense. It is unnecessary to in- 
dicate the actual amounts for each 
group of stores in view of the fact 
that these are set out both in tabular 
and in graphic form in Table 207. 

Wages and salaries are also ex- 
pressed in Table 207 in terms of $100 
of selling expense per stock turnover. 
As stores increase in size, the amounts 
decrease from $-17.39 as a maximum 
for stores with sales less than $40,000, 
to $22.48 for those with sales of $180,- 
000 and over. The decrease is much 
more noticeable when wages and sal- 
aries are expressed in this form than 
when measured in terms of selling 



296 



TABLE 206 



AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER STOCK TURN- 
OVER, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF ADVER- 
TISING PER $100 OF TOTAL NET SALES, 1919 



CUaslriad 

Total 
Met Sales 


Aaount of 

Advarttalne 

par $100 of 

Total 

Net Sales 


number 

of 
Stores 


Bages and Salaries per JlOO of Total Met Sales 


Aa{^3 and 


Salaries por 4100 of Total Hat Sales 
per Stock Turnover 


mount 


Per Cent. 


Amount 


Per Cent, 


(In 000*8) 


0"!^o Actual 
) 80 40 60 80 100 120 140 


Oraphla 
) 80 40 60 80 100 180 140 


Actual 




• Total 
(AvorsRo) 


282 


46.67 


; 


100.0 


$3.03 




100.0 










Dndsr $1 
»1 to $8 
»2 to »3 
$3 t over 


79 

100 
66 
37 


5.93 

6.12 
7.57 
6.61 


88.9 
91.8 
113.5 
99.1 


2.82 
3.06 
3.29 
2.75 


93.1 
101.0 
108.6 


Total 
(Average) 


; 


""^""^^^^ I 








; 


: 




^HBBB 


s 






Total 
(Average ) 


33 


4.26 


63.9 


2.34 


93.7 






Cbdar t40 


under $1 
«lto $2 
♦8 to $3 
$3 4 over 


15 
14 
8 
2 


3.79 
5.39 
1.62 
3.35 


56.8 
80.3 
24.3 
S0.2 


2.23 
4.15 

0.70 
2.56 


73.6 
137.0 
23.1 
85.1 




"~" 










Total 
(Average ) 


106 


S.3« 


80.4 


2.96 


96.3 










Otdsr $1 
»1 to «8 

$2 to $3 
43 * over 


43 

37 
80 
6 


4.58 
5.28 
6.14 
8.57 


66.7 
78.9 
92.1 
128.5 


2.54 
3.09 
3\41 

5.04 


83.3 
102.0 
112.5 

165.3* 


$40 to |80 


1 












1 










Total 
(Average) 


96 


6.85 


102.7 


3.61 


119.1 










under $1 
n to #8 
»8 to 43 
43 & over 


la 

39 
26 
IS 


7.44 

6.07 
7.24 
7.39 


111.5 
91.0 
108.5 
110. e 


3.54 


116.3 
100.3 
125.7 
135.6 


tSO to $180 


; 






























total 
(Average) 


45 


7.15 


107.8 




64.8 












Obdar 4l 
♦l to 48 
48 to 43 
4Sft orar 


3 
10 
18 
14 


7.87 
6.63 
8.03 
6.29 


1 


109.0 
103.1 
120.4 
94.3 


2.20 






HBO ft oTar 


• 


87.5 








• 






2.25 




74.3 



Avsrags 46.67 



Average 43.03 

Pull length not shown 



expense alone. This, of course, fol- 
lows as a result of the increased rates 
at which stocks are turned as stores 
increase in size. 

Tables 206 and 207 should be inter- 
preted with the following facts in 
mind: First, the amounts of wages 



and salaries per $100 of total net 
sales increase as stores increase in 
size. Second, wages and salaries per 
$100 of selling expense decrease as 
stores increase in size. Third, amounts 
of advertising per $100 of total net 
sales increase as stores increase in 



297 



size. Fourth, the rates at which stock 
is turned increase with the increased 
size of stores. The figures in these 
tables constitute standards or norms 
of expense distribution for the stores 
considered, and are of value to mer- 
chants in measuring the relative po- 
sitions of their own stores when clas- 
sified in the form used. 



B. — Yearly Amounts of Wages and 
Salaries per $100 of Total Net 
Sales and per $100 of Selling Ex- 
pense, for Stores Classified hy 
Size of City in Which Located* 
1919. 

In Tables 208 and 209, the same 
282 stores which are used in Tables 

* Population figures are for 1920. 



TABLE 207 

WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER STOCK TURNOVER, FOR 

STORES CLASSIFIED BY SIZE AND BY AMOUNT OF ADVERTISING 

PER $100 OF TOTAL NET S.U.ES, 1919 





Anotmt of 

ilvsrtloliw 

par tioo 0? 

To til 

BM Sales 


Kvixber 

of 
stores 


ffages and Salaries per SlOO 
of Selling Exponee 


Wages and Salaries per vlOO of Selling Expense 
per Stock Turnover 


Tot^l 


Amount 


Pffr Cent. 


Anotmt 


Per Cent. 


(Id OOO'i) 


Graphic 
) 20 40 60 80 100 120 140 


Actual 


Or^PMo 1 Aotual 

20 40 60 60 100 120 140 160 180 200 




total 


282 


t65.67 




100.0 


J29.8S 


1 


lOO.O 




Qoder tl 
♦l tot2 
»2 to »3 
♦S k over 


79 
100 
66 
S7 


85.87 
72.42 
CS.16 
63.51 




127.7 
110.3 
09.2 
61.5 


39.94 
36.21 
28.33 
22.50 




133.6 

121,5 
04.9 
74.7 


Total 
(Avspage) 
























Total 
(Averago) 


S3 


71.09 


108.2 


47.39 




158 .a 










DniJor $1 
tl to tZ 
%2 to tJ 

$5 k over 


15 
14 
2 
i 


75.61 
75.71 
30.73 
47.13 


115.1 
115.3 
46.6 
71.8 


44.48 
58.24 
13. S5 
56.25 




149.0 
195.1 
44.0 
121.4 


Omar %V> 


^ 








— 








Total 
(Average) 


106 


71.92 


109.5 


39.96 


133.9 










Dndor tl 
tl to t2 
t2 to tS 
t^ k over 


«3 

SO 
6 


79.37 
71.64 
65.92 
64.73 




120.8 
109.1 
100.4 
98.6 


44.09 
42.14 
56.62 
38.06 




147.T 
141 .e 
122 .T 
127.6 


t40 to^ 














: 








t 




Total 
(Average) 


98 


67.45 


102.7 


55.50 


118.9 










Older tl 
tl to tZ 
t2 to ti 
tS k over 


18 
39 
25 
IS 


65.15 
71.66 
62.26 
56.55 


129.7 
109.1 
94.8 
86.1 


40.55 
35.64 
32.77 
31.42 


i35.a 

120.1 
109.8 
105.9 


160 to tiao 














""^^^"^"i 












Total 
(AveraRe) 


4S 


62.93 


95.8 


22.48 


75.S 








under tl 
tl to t2 
t2 to tS 
tS tl over 


3 

10 

la 

14 


91.78 
73.49 
66.55 
51.67 


1 


159.7 
111.9 
101.3 
79.0 


27.81 
26.27 
24.65 
18.55 




93.2 
94.7 
82.6 
62.1 


llSO ti ovor 


i 


^^^^^^^^ i 




■^■■111 ■ I 


: 









Amr*e> t65.67 



Average tss.es 



298 



206 and 207 are classified, irrespective 
of size, by location and by the 
amounts spent for advertising per 
$100 of total net sales. A moment's 
consideration of them is of interest. 
As shown in Table 208, it cost on the 
average in wages and salaries $6.12 
to sell $100 worth of goods in the 
stores in small cities. For the 78 
stores in the large cities, the corre- 
sponding cost was $7.17. For the 
stores in the small cities the amounts 
increase as the amounts spent for 
advertising per $100 of total net sales 
increase. Regularity of change, how- 
ever, for the stores in the large cities 
does not hold. When stores in the 



two locations having the same amount 
of expenditure for advertising per 
$100 of total net sales are compared, 
the amounts, in every case except one, 
are lower for the stores in the small 
than for those in the large cities. 
It will be remembered, however, in 
comparing these figures that store- 
size is ignored. It cannot, however, 
be forgotten in assigning significance 
to this fact. On the whole, the stores 
in the small, are smaller on the aver- 
age than those in the large cities, and 
undoubtedly this explains in part the 
difference in the amounts of wages 
and salaries per $100 of total net 
sales. 



TABLE 208 

AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER STOCK TURN- 
OVER, FOR STORES CLASSIFIED BY SIZE OF CITY AND BY AMOUNT OF 
ADVERTISING PER $100 OF TOTAL NET SALES, 1919 



Eize 

of 

City 

(in OOO's) 


Amomt of 

Advertising 

per ClOO or 

Total 

Not Sales 


Nunbcr 

of 
Stores 


Wages ana Salaries per OlOO of Total Met Sales 


'.iagos and Salaries per viOO of Total llet Sales 
per StDcU Ti.'Tnovcr 


Amount 


Per Cent. 


Amount 


Per Cent, 


''■■^P"" 1 Actual 
) 20 40 60 80 100 120 140 


^^«f^^° i Actual 
20 40 €0 80 100 ICO 140 




Total 
(AvoragcJ 


282 


J6.67 




100.0 


J3.03 




100.0 










DnUor *1 
♦l to J3 

SS to $3 
$5 k over 


79 
100 
66 

57 


5. 95 
6.12 
7.67 

6.61 




88.9 
91.8 
113.5 
99.1 


2.82 
S.06 
5.29 
2.75 


95.1 

101.0 
108.6 
90.8 


Totol 
(Avertiee) 


; 






















Totel 
(AvLr-ge) 


20" 


6.12 


1 


91.6 


5.22 


106.5 






^^^^^^H 




Under Jl 
{1 to C£ 
J2 to i3 
'^ & over 


72 
79 
J9 
14 


5.ei 

6.08 
6.50 
6.86 


t 


64.1 
91.2 
96.8 
102.8 


2.81 
5.36 
5.66 

4.04 




92.7 

111.6 
120.8 
133.5 


Oniier 






















i 




Total 
(Averspe) 


78 


7.17 


107.5 


2.76 


91.1 










Under tl 
«1 to $2 

is X.0 a 

iZ & ovor 


7 
21 
27 

23 


6.21 
8.15 
6.57 


117.5 
93.1 

122.2 
98.5 


3.1' 
2.^8 
3.13 
2.53 


103.6 
81.8 

103.3 
83.5 


40 and 






















: 



Aver ago ^aC? 



Average ^.05 



299 



TABLE 209 



AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER STOCK TURN- 
OVER, FOR STORES CLASSIFIED BY SIZE OF CITY AND BY AMOUNT OF 
ADVERTISING PER $100 OF TOTAL NET SALES, 1919 



of 

citr. 


Amount of 

Advertljlne 

per llOO of 

Total 

hat Sales 


mwber 

of 
StorC3 


*agoo and Salaries per $100 of 
Selling Lxpenje 


Wages and Salaries per $100 of Selling Sxpau» 
per Stock Turnover 


Anount 


Per Cent. 


Amount 

( 


Per CoDt. 


20 40 60 80 100 ir^O 140 


Graphic 

1 Actual 

20 40 60 80 100 120 140 




Total 
(Avurage ) 


£82 


♦65.67 




100.0 


529.85 


. 




100.0 










UnUor $1 
«1 to t2 
»2 to »3 
Is k over 


79 
XOO 
66 
37 


83.87 
72.42 
65.16 
53.51 


127.7 
110.3 
99.2 
81.5 


39.94 
36.21 
28.33 
22.30 




133.8 
121.3 
94.9 
74.7 


Total 
















: 






i 






Total 
(AMr;.ee) 


204 


71.09 


108.3 


37.42 




125.4 










Under tl 
ll to %2 

»2 to »3 
♦3 I. o7or 


72 
79 
39 
14 


82.50 
73.52 
63. Ll 
57.41 


125.6 
112.0 
96.7 
67.5 


41.25 
40.84 
35.28 
33.78 


138.2 
136.8 
118.2" 
113.2 


Under 
























Total 
(Avorago) 


78 


62.03 


94.5 


23.86 






79.9 










under |1 

♦i to »a 
iz to %3 
»3 t over 


.7 
21 

27 
23 


86.15 
70.51 
65.90 
52.90 


131.2 

107.4 
100.5 
80.6 


3«.46 

28.20 
25.38 
20.35 




115.4 
94.S 
85.0" 
68.2 


40 uv3 






r- 


over 








; 









Average v65*67 



Average $29.6S 



"WTien wages and salaries are ex- 
pressed in terms of sales per stock 
turnover, as in Table 208, the average 
cost is higher for the 204 stores in 
the small than for the 78 in the large 
cities. Moreover, the same condition 
holds for three of the four groups of 
stores differently located, but with 
similar expenditures for advertising 
per $100 of total net sales. This fact 
is undoul>tedly attributable in large 
part to the more rapid turns which 
characterize the stores in the large 
cities. The figures are submitted for 
what they are worth as showing the 
conditions which ()])tain. They must, 
however, be interpreted in the light 



of the conditions named for Tables 
206 and 207. 

In Table 209, wages and salaries 
are expressed in terms of selling ex- 
pense for the 282 stores classified as 
in Table 208. For the 204 stores 
located in the small cities, wages and 
salaries constituted $71.09 of every 
$100 of selling expense; for the 78 
stores in the large cities the amount 
was $62.03. That is, wages and sal- 
aries are a relatively smaller propor- 
tion of selling expense for stores in 
large than for stores in the small 
cities. When stores of different loca- 
tion, but with the same expenditures 
for advertising per $100 of total net 



300 



sales, are compared, the amounts are 
lower for two and higher for two 
groups of stores located in the small 
than for those located in the large 
cities. The average for the entire 
group, therefore, must be considered 
in the light of these divergent ten- 
dencies. The size of stores is un- 
doubtedly of significance in determin- 
ing the actual amounts involved. 

"When wages and salaries are ex- 
pressed in terms of selling expense 
per stock turnover, the averages for 
the stores in the two city-groups are 
not only lower than when they are 
expressed in selling expense alone, 
but are in the inverse order so far as 
size is concerned. The amount for 
the 204 stores in the small cities is 
$37.42, and for the 78 in the large 
cities, $23.86. Moreover, the amounts 
are larger for the stores in the small 
cities than for those in the large cities 
when classified by expenditures for 
advertising per $100 of total net sales. 
This condition is due not so much to 
the absolute difference in wages and 
salaries as a part of selling expense, 
as to the relative rapidity with which 
stock is turned in stores with different 
locations. Here again the actual 
amounts are of interest inasmuch as 
they constitute the norms of expense 
distribution found in these stores. 

C. — Yearly Amounts of Wages and 
Salaries per $100 of Total Net 
Sales and per $100 of Selling 
Expense, for Stores Classified hy 
Bates of Stock Turnover, 1919. 

In Tables 210 and 211, respectively, 
wages and salaries are expressed in 



terms of sales and of selling expense 
for stores classified by rates of stock 
turnover and by expenditures for 
advertising per $100 of total net sales. 
The body of Table 210 is of interest. 
For the 145 stores that turned their 
stock less than twice, it cost in wages 
and salaries $6.54 to sell $100 worth 
of goods. For those which turned 
their stock between two and three 
times, and three times and over, 
the corresponding costs, respectively, 
were $6.84 and $6.51. That is, the 
average amount was highest for the 
stores turning their stock between 
two and three times. For the other 
two groups the amounts are essen- 
tially constant. 

Interest in the table lies quite as 
much in the amounts spent for adver- 
tising as in the rates at which stock 
is turned in 1919. The order of the 
table makes it possible to compare the 
amounts of wages and salaries per 
$100 of total net sales for stores hav- 
ing given rates of stock turnover, but 
with different amounts spent for 
advertising per $100 of total net sales. 
Without specifying in detail each of 
the various average amounts, it is of 
interest to observe that the amounts 
of wages and salaries per $100 of 
total net sales increase with the ex- 
penditures for advertising per $100 
of total net sales for the stores which 
turned their stock less than two times. 
A corresponding increase, except for 
one group of stores, also holds for 
those which turned their stock be- 
tween two and three times. For the 
37 stores with stock turnover rates of 
three and over, the amounts are ir- 



301 



regular and the direction of change 
uncertain. 

In interpreting Table 210, it should 
be remembered that store-size, as 
such, is not used as a basis of classi- 
fication, although generally it may be 
said that the more rapidly stocks are 



turned and the greater the amounts 
spent for advertising in relation to 
sales, the larger the store. Accord- 
ingly, the tendency for the amounts 
of wages and salaries per $100 of 
total net sales generally to increase 
with expenditures for advertising in 



TABLE 210 

TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER 

$100 OF TOTAL NET SALES, FOR STORES CL^^SSIFIED BY RATES OF STOCK 

TURNOVER AND BY AMOUNT OF ADVERTISING PER $100 

OF TOTAL NET SALES, 1919 





Amount of 

Advertising 

per llOO of 

Total 

Set Bale* 


Braaber 

of 
Stores 


Total 
Bat Salaa 


Total 
Wage* t: 
Salaries 


Wages and Salarlea per llOO of 
Total Hot Salea 


E2t«3 of 

Ltook 
Tomovar 


< 


Per Cent. 


Oraphle Actual 
) 20 40 60 80 100 120 




Total 


282 


135,563,014 


12,371,762 


|6.67 


1 


100.0 








Ttadar |1 
|1 to |2 
|2 to Is 
Is & OT«r 


79 

100 

66 

37 


5,955,246 

9,843,487 

11,364,997 

' 8,899,264 


353,880 
602,877 
860,553 
654,952 


5.93 
6.12 
7.67 

6.61 


1 


88.9 

9i.a 

U3.5 
99.1 


rrtal 


; 


(Avu-^o) 


; 




1 




^^^^i 




Total 
(Average) 


145 


11.611,884 


759,775 


6.54 


: 


98.1 




1 




VoOmr |1 
|l to |2 

|2 to Is 
|3 » orer 


44 

SS 
29 
17 


2,705,693 
4,040,688 
3,267,854 
1,698,872 


156,834 
258,437 
221,601 
122,903 


s.eo 

6.40 

6.7S 
7.69 


87.0 

96.0 

101.6 

115.3 




: 


Under 2 










1 




Total 
(ATerage) 


100 


15,987,018 


1,093,660 


6.84 


102.5 




: 




Under |l 
|1 to 12 
|2 to |3 
Is fc orer 


22 
37 
26 
15 


1« 465, 134 
4,277,216 
5,341,954 
4,902,714 


82,210 
281,771 
424,271 
305,408 


5.61 
6.59 
7.94 
6.28 


64.x 

98.8 

119.0 

93.4 


a to fc 
















Total 
(ATerage) 


37 


7,964,112 


6X8,327 


6.51 


97.6 






8 k ovor 


Under ll 
|1 to |2 
|2 to Is 

Is k over 


13 

e 
11 

5 


1,784,417 
1,525,588 
2,755,809 
1,898,298 


114,356 

€2,669 

214,681 

126,641 


6.41 
4.11 
7.79 
6.67 


96.1 

61.6 

116.8 













Average $6.67 



302 



TABLE 211 

TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES 

PER $100 OF SELLING EXPENSE, FOR STORES CLASSIFIED BY RATES 

OF STOCK TURNOVER AND BY AMOUNT OP ADVERTISING 

PER $100 OF TOTAL NET SALES, 1919 





Amount of 

Advertising 

per $100 of 

Total 

Net Sales 


Humber 

of 
Stores 


Total 
Selling 
Expense 


Total 
Weiges & 
Salaries 


Wages and Salaries per $100 of 
Selling Expense 


Rates of 
Stock 


Anount 

C 


Per Cent. 


Turnover 


Graphic .j ^^^ 
) 20 40 60 80 100 120 140 




Total 
(Average ) 


282 


#3,611,688 


$2,371,762 


$65.67 


! 


100.0 








Under |1 
|1 to $2 
#2 to #3 
#3 & over 


79 

100 

66 

37 


421,324 

832,475 

1,320,718 

1,037,171 


353,380 
602,877 
860,553 
554,952 


83.87 

72.42 
63.16 
S3. 51 


> 


127.T 

U0«» 

99.3 

81.5 


Total 




(Average) 














Total 
(Average) 


1415 


1,103,147 


759,775 


68.87 


s 


104.9 








Under ^1 
♦l to |2 
♦2 to |3 
♦3 k over 


44 
$5 

29 

17 


190,547 

545,623 
"356,165 
211,012 


156,834 
258,437 
221,601 
122,903 


82.39 
74.77 
62.22 
58.24 


! 


125.5 

113.9 

94.7 

88.7 


Iftider 2 


; 


• 




: 




1 




Total 
(Average) 


100 


1,694,631 


1,093,660 


64.54 


98.3 








Under $1 
ll to |2 
*2 to «3 
$3 & over 


22 
37 
26 
15 


99,888 
387,951 
629,697 
577,095 


82,210 
281,771 
424,271 
305,408 


82.30 
72.63 
67.38 
52.92 


125.3 

110.6 

102.6 

80.6 


2 to 3 








; 




1 




Total 
(Average) 


37 


813,910 


518,327 


63.68 


97.0 




1 




Under f 1 
$1 to |2 
$2 to $3 
$3 & over 


13 
8 

11 
5 


131,089 

98,901 

334,856 

249,064 


114,336 

62,669 

214,681 

126,641 


87.22 
63.37 
64.11 
50.35 


132.3 
96.5 
97.6 
77.4 








^^^""^^1 




! 







Average $65.67 



terms of sales is explained in part by 
the size of the stores. In spite of this 
limitation of the data, the actual 
amounts are of interest in themselves. 
In Table 211 the basis of classifica- 
tion is the same as in Table 210, the 
amounts of wages and salaries, how- 



ever, being expressed in terms of 
selling expense. For the stores which 
turned their stock less than twice, the 
amount which wages and salaries con- 
stitute of every $100 of selling ex- 
pense is $68.87. The corresponding 
amounts for those which turned their 



303 



stock between two and three times, 
and three times and over, are $64.54 
and $63.68, respectively. That is, the 
amounts decrease as the rates of 
stock turnover increase. 

For each group of stores classified 
by rates of stock turnover, the details 
of the table make it possible to com- 
pare the amounts of wages and sal- 
aries per $100 of selling expense for 
stores spending different amounts for 
advertising in relation to sales. The 
basis of classification of wages and 
salaries is the relation which they 
bear to selling expense, while that of 
advertising is the relation which it 
bears to sales. Advertising, however, 
constitutes a part of selling expense 
as do also wages and salaries. Ac- 
cordingly, with this form of classi- 
fication, it is to be expected that the 
amounts of wages and salaries per 
$100 of selling expense will decrease 
with the increase in advertising ex- 
penditure per $100 of total net sales. 
Such a decrease characterizes each 
group of stores when classified by 
rates of stock turnover. The extreme 
differences are most noticeable in 
stores which turned their stock most 
rapidly. It is unnecessary' to indicate 
for each group of stores the actual 
size of these amounts or the i-elative 
rates at which they decrease. Such 
comparisons may be made by the 
reader if he is interested. 

In Tables 208 to 211, inclusive, 
store size Ls ignored in the classifi- 
cation. The data should be inter- 
preted with this fact in mind, inas- 
much as the amounts of wages and 
salaries, in relation to selling expense, 



seem to be determined by the size of 
stores, by the rates at which stock is 
turned, and by the amount expended 
for advertising in relation to sales. 

D. — Summary. 

(1). The amounts of wages and 
salaries per $100 of total net 
sales and per $100 of total 
net sales per stock turnover, 
increase as the expenditures 
for advertising in terms of 
sales increase. This holds for 
all stores and for stores of a 
given size. 

(2). For stores with a given 
amount of advertising expen- 
diture in terms of sales, the 
amounts of wages and salaries, 
measured in terms of sales 
alone, increase as stores in- 
crease in size. The amounts 
in terms of both sales and 
stock turnover increase with 
the size of the stores for those 
having annual sales of less 
than $180,000, and decrease 
for those having sales in ex- 
cess of this amount. 

(3). The amounts of wages and 
salaries per $100 of selling 
expense, and per $100 of sell- 
ing expense per stock turn- 
over, decrease as the amounts 
of advertising in terms of 
sales increase, and also as the 
size of the stores increases. 

(4). For stores with a given 
amount of advertising expen- 
diture per $100 of total net 



304 



sales, wages and salaries in 
terms of sales alone are higher 
in the large than in small 
cities, while in terms of sales 
per stock turnover they are 
loM^er in large than in small 
cities, 

(5). For stores with a given 
amount of advertising expen- 
diture per $100 of total net 
sales, the proportions of sell- 
ing expense attributable to 
wages and salaries tend to be 
neither higher nor lower in 
small than in large cities. 



The amounts of wages and 
salaries per $100 of selling 
expense per stock turnover 
are higher for stores in the 
small than for those in large 
cities. 

(6). When stores are classified by 
rates of stock turnover, the 
amounts of wages and salaries, 
when expressed in terms of 
sales, increase and in terms of 
selling expense, decrease as 
the amounts of advertising 
per $100 of total net sales 
increase. 



305 



V. EXPENDITURES FOR ADVERTISING 



1. — EXPENDITt^RES FOB AD\T31TISING 
FOB STORES CLASSIFIED BY YEARS, 
BY SIZE AND BY LOCATION. 

The expression, "expenditures for 
advertising," includes all the money 
spent for advertising, as such, as well 
as the salaries of window trimmers 
and advertising men. In the small 
stores where such employees do not 
give their full time to advertising or 
to window trimming, the compensa- 
tion paid to them is included in wages 
and salaries. Moreover, in establish- 
ments having window trimmers and 
advertising men, all forms of com- 
pensation paid to them are included 
in advertising in spite of the fact that 
occasionally they may have devoted 
part of their time to selling. In inter- 
preting the following data, these facts 
should be kept in mind. They may 
help to explain in part some of the 



differences in the amounts of adver- 
tising expenditure for stores of dif- 
ferent size.* 

A. — Yearly Amounts of Expenditure 
for Advertising per $100 of Total 
Net Sales and per $100 of Selling 
Expense, 1919, 1918, and 1914. 

The records of 154 identical stores 
for the years 1919, 1918, and 1914 are 
available for the study of the amounts 
of expenditure for advertising charge- 
able to selling. In Table 212, these 
amounts are expressed in terms of 
sales. For the three years combined, 
the expenditure for advertising per 
$100 of total net sales was $2.30. In 

* It should be noted that * ' advertising ' ' 
aa used herein differs in some respects from 
the corresponding item in the Bureau's 
study, Costs, Merchandising Practices, Ad- 
vertising, and Sales in the Betail Distribu- 
tion of Clothing, Volume V. 



TABLE 212 

TOT.U. NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL 
NET SALES, FOR 154 IDENTICAL STORES, 1919, 1918, AND 1914 





Nimbor 

of 
Store- 
years 


Total 
Hot Sales 


Total 
Advertising 


Advertl 


3lng per $100 of Total Net Sales 


Years 


Amount 


Per Cent. 




Gr^P"« Actual 
5 20 40 60 80 100 120 


Total 


462 


$44,835,499 


$1,050,669 


$2.30 


1 


100.0 


(AveraE©) 


• 


1919 
191B 
1914 


154 
154 
154 


20,892,764 

14,714,515 

9,228,220 


463,940 
326,047 
240,682 


2.22 
2.22 
2.61 


96.5 

96.5 

113.5 

\z..-..^.... . ■.■rrr^ 




1 





Average $2.30 



306 



1914 the corresponding amount was 
$2.61, in 1918, $2.22, and in 1919, 
$2.22. That is, there was a decrease 
between 1914 and 1918, but between 
1918 and 1919 the amounts remained 
constant. 

In Table 213 the amounts of adver- 
tising expenditures per store and 
sales per store are set out for 154 
stores so as to show relatively the 
rates at which both items increased 
in 1918 and 1919 as compared with 
1914. The table also shows the rela- 



age increases in both items in 1918 
and 1919 over 1914. Selling expense 
increased 106 per cent., and advertis- 
ing expenditures, 92.8 per cent., be- 
tween 1914 and 1919. Smaller in- 
creases in both elements of expense 
occurred between 1914 and 1918. 
When the amounts of advertising 
expenditure are expressed per $100 
of selling expense, they decreased 
10.8 per cent, between 1914 and 1918 
and 6.4 per cent, between 1914 and 
1919. 



TABLE 213 

AVERAGE AMOUNT AND PER CENT. INCREASE OR DECREASE OP TOTAL NET SALES AND 

ADVERTISING PER STORE, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL 

NET SALES, FOR 154 IDENTICAL STORES, 1919, 1918, AND 1914 



Average Anotint of Total Fet Sales per Store 



Average Amoujit of Advertlalng 
per JlOO or Total Met Sales 



Per Cent. Increa 



20 40 60 80 100 120 140 



Per Cent. Increase 



20 40 60 80 100 



Per Cent. Dec 



Graphic 

40 60 80 100 



isis 

191« 



$135,667 
9S,S49 
S»,924 



126.4 
S9.S 



$3,01} 
2,117 
1,563 



92.8 
35.4 



$2.22 
2.22 
2.61 



14.9 
14.9 



tive decrease in the advertising ex- 
penditure in relation to sales in 1918 
and 1919 as compared with 1914. For 
the stores in question, while sales in- 
creased 126.4 per cent, between 1914 
and 1919, the amounts expended for 
advertising increased in the same 
period 92.8 per cent. When the ad- 
vertising expenditures are expressed 
in terms of sales, the amounts in 1919 
and 1918 were 14.9 per cent, lower 
than in 1914. 

Table 214 shows the amounts of 
selling expense and advertising ex- 
penditure per store and the percent- 



From Tables 212 to 214, inclusive, 
it may be concluded as follows : First, 
advertising expenditures per $100 of 
total net sales for stores, irrespective 
of size, decreased between 1914 and 
1918 and remained constant between 
1918 and 1919 in spite of the fact that 
both sales and expenditures for ad- 
vertising per store increased in each 
of the years as compared with 1914. 
Second, expenditures for advertising 
per $100 of selling expense for stores, 
irrespective of size, decreased between 
1914 and 1918, and increased between 
1918 and 1919. 



307 



TABLE 214 

AVER^VGE AMOUNT AND PER CENT. INCREASE OR DECREASE OF SEI.LING EXPENSE AND 

ADVERTISING PER STORE, AND AVERAGE AMOUNT .OP ADVERTISING PER 

$100 OF SELLING EXPENSE, FOR 154 IDENTICAL STORES, 

1919, 1918, AND 1914 





Artnf iBDtmt of SaUlng Bxp«n«a 
I>er Stor* 


ATsr>gs Aaount of Advertlsllis 
per 8tor« 


Avorsno AsKiunt of Advertising 
per 9100 of Selling Bxpenee 


Jot* 


Aammt 


tT C«nt. Icerekse over 1014 


Jtooimt 


Per Cent. Inoreaoe over 1914 


Aommt 


Per Cent. Decrease from 1914 




1 >!r»phlo 


1 Orepblo 
Actual 1 


Actual 1 






so 40 eo 80 100 120 




M 40 60 80 IOC 




20 40 60 eo 100 




10,«S2 


106.0 
51. B 




ts.ou 
2, in 


ez.a 

SS.4 




$21.26 
20.26 


6.4 

10. a 


3 
3 


1»U 




.» 


1«1« 


e.ST9 






1.SU 






28.72 







B. — Yearly Amounts of Expenditure 
for Advertising per $100 of Total 
Net Sales and per $100 of Selling 
Expense, for Stores in 1919, 1918, 
and 1914, Classified hy Size. 

In Table 215, stores are classified 
by size and for each group the ex- 
penditures for advertising per $100 
of total net sales are shown for each 
of the different years under consid- 
eration. The total section of this 
table is the same as that shown in 
Table 212. For each group of stores, 
when classified by size, the amount of 
expenditure for advertising per $100 
of total net sales was less in 1918 than 
in 1914, and in each group, except 
that which includes stores with an- 
nual sales of $180,000 and over, less 
in 1919 than in 1918. 

In Table 216 the amounts of adver- 
tising expenditures per $100 of sell- 
ing expense are shown for the 154 
stores in each of the years 1914, 1918, 
and 1919, as classified in Table 215. 
For the entire group, these expendi- 
tures decreased between 1914 and 



1918, and increased between 1918 and 

1919. When the stores are classified 
by size, for each group there was a 
decrease in the amounts between 1914 
and 1918. Between 1918 and 1919 
the amounts increased for two groups 
and decreased for two groups of 
stores. 

C. — Yearly Amounts of Expenditure 
for Advertising per $100 of Total 
Net Sales and per $100 of Selling 
Expense, for Stores in 1919, 1918, 
and 1914, Classified by Size of 
City in Which Located* 

In Table 217, the 154 stores are 
classified by the size of the city in 
which they are located, two size- 
groups being used for this purpose. 
For the 115 stores located in the small 
cities, net sales per store were 109.4 
per cent, higher and expenditures for 
advertising per store, 67.1 per cent, 
higher in 1919 than in 1914. Between 
1914 and 1918, sales per store in- 
creased 49.4 per cent, and advertising 

* Population figures are for 1920. 



308 



per store, 27.9 per cent. Accordingly, 
when the expenditures for advertis- 
ing are expressed in terms of sales, 
there was a decrease of 14.1 per cent, 
in the amounts between 1914 and 
1918, and of 19.9 per cent, between 
1914 and 1919. 

For the 39 stores located in the 
large cities, net sales increased be- 
tween 1914 and 1919 by 144.6 per 



cent., while advertising increased 
110.5 per cent. Between 1914 and 
1918 the sales for these stores in- 
creased 70.3 per cent., and the 
amounts of advertising, 40.7 per cent. 
When the advertising expenditures 
are expressed in terms of sales there 
was a decrease of 17.2 per cent, be- 
tween 1914 and 1918, and of 13.8 per 
cent, between 1914 and 1919. 



TABLE 215 

TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL 
NET SALES, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE, 

1919, 1918, AND 1914 



Classined 

Total 
Het Sales 


Years 


KuBiter 

of 
St ore - 
years 


Total 
Net Sales 


Total 
Advertising 


Advertising per $100 of Total Het Sales 


Amount 


Per Cent. 


(Is OOO'a) 


Graphlo 
5 20 40 60 80 100 120 140 160 


Aotual 




Total 
(Average ) 


462 


(44,835,499 


(1,030,669 


(2.30 




100.0 








1919 
1918 
1914 


164 
154 
154 


20,892,764 
14,714,515 
9,228,220 


463,940 
526,047 
240, 662 


3.22 
2.22 
2.61 


96.5 

96.5 

113.5 


Total 
(Average ) 














Total 
(Average ) 


129 


3,590,553 


60,972 


1.70 


73.9 


Itedar (40 


1919 
1918 
1914 


14 
42 

73 


428,714 
1,256,795 
1,905,044 


6,262 
19,197 
35,513 


1.46 
1.63 
1.86 


6S.S 
66. S 

eo.9 




— i 




Total 
(Average ) 


172 


9,775,007 


167,646 


1.72 


74.8 


t40 to $80 


1919 

leis 

1914 


67 
63 

8S 


6,222,468 
3,662,794 
2,869,746 


42,797 
60,416 
64,433 


1.3S 
1.66 
8.23 


57.8 
71.7 
97.0 




i 




Total 
(Average ) 


117 


13,695,639 


319,703 


2.33 


101.3 




: 




191» 
1918 
1914 


66 
66 
£4 


6,866,816 
4,090,203 
2,738,621 


140,074 
98,491 
81,138 


Z.04 
2.41 
2.96 


68.7 
104.8 
128.7 


t&o to lieo 










1 




Total 
(Average ) 


44 


17,774,300 


482,348 


2.71 


117.8 








1919 
1918 
1914 


25 
14 
6 


10,574,767 
6,704,723 
1,694,810 


274,807 
147,943 
69,598 


2.65 
2.59 
3.52 


115.2 
112.6 
153.0 


Jieo k over 
























Average (2.30 





309 



TABLE 216 

TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF 

SELLING EXPENSE, FOR 154: IDENTICAL STORES CLASSIFIED 

BY SIZE, 1919, 1918, AND 1914 



Classified 

Total 
Bet Sailes 
(In OOO'b) 


Years 


H'jiaber 

of 
Stoi^" 
years 


Total 
Sellln5 
Expensj 


Total 
Advertising 


Advertising per |100 of Selling Expense 


^JWrtTTTlt*. 


Per Cent. 


Qraphic Actual 
) 20 40 60 80 100 120 




Total 
(Average) 


462 


f4, 851, 112 


$1,030,669 


§21.25 




100.0 




1 


Total 


1919 
1918 
1914 


154 
154 
154 


2,182,027 
1,609,671 
1,059,414 


463,940 
326,047 
240,682 


21.26 
20.26 
22.72 


100.0 
95.3 

ioe.9 


(Arera-3 ) 










1 




Total 
(Average ) 


129 


304, 954 


60,972 


19.99 


; 


94.1 




1 


Tbder $40 


1919 
1918 
1914 


14 
43 
73 


29,018 
101,621 
174, 315 


6,262 

19, 197 
35,513 


21.58 

18.89 
20.37 


101.6 
88.9 
95.9 














Total 
(Average ) 


172 


913,357 


167,646 


18.35 


86.4 




^^^^^^^^ 


^ to $80 


1919 
1918 
1914 


67 
63 
52 


246,207 
545,293 
321,857 


42,797 
60,416 
64,433 


17.33 
17.50 
20.02 


81.8 
82.4 
94.2 


t 




i 




: 




Total 
(Average) 


117 


1,491,801 


519,703 


21.43 


100.8 






|80 to $180 


1919 
1918 
1914 


58 
35 
24 


719,436 
445,138 

327,227 


140,074 
98,491 
81,138 


19.47 
22.13 
24.80 


91.6 
104.1 
116.7 










1 




Total 
(Average) 


44 


2,141,000 


432,348 


22.53 


106.0 






?180 & over 


1919 
1918 
1914 


25 

14 

5 


1,187,366 
717,619 
256,015 


274,807 

147,943 

69,598 


23.14 

20.62 
25.25 


108.9 

97.0 

118.8 






; 




1 ' 



Averagtt #21.25 



An inspection of this table shows 
that both sales and advertising ex- 
penditures increased more rapidly 
for the stores in the large than for 
those in the small cities, when the 
comparisons are made between 1914 



and 1919, and 1914 and 1918. In 
spite of this fact, however, the de- 
crease in the amounts of advertising 
expenditure per $100 of total net 
sales between 1914 and 1919 was less 
in the stores in the large than in those 



310 



TABLE 217 

RELATION OF ADVERTISING TO TOTAL NET SALES, FOR 154 IDENTICAL STORES CLASSI- 
FIED BY SIZE OF CITY, 1919, 1918, AND 1914 



Size 

of 

City 

(in ooo'e) 


Years 


Number 

of 
Stores 


Net SsJea 


Advertising 


Total 


Average Amount 
per Store 


Total 


Average Amount 
per Store 


Per $100 of TotBl 
Net Sales 


Amount 


Per Cent. 
Increase 
over 1914 


^kBOunt 


Per Cent. 
Increase 
over 1914 


Amoxmt 


Per Cent« 
Decrease 
from iy.4 


Total 
(Average) 


1919 
1918 
1914 


154 
154 
154 


120,892,764 
14,714,515 
9,228,220 


$155,667 
95,549 
59,924 


126.4 
69.5 


1465,940 
526,047 
240,682 . 


♦5,015 
2,117 
1,565 


92.8 
SS.4 


$2.22 
2.22 
2.61 


14.9 
14.0 


Under 

40 


1919 
191B 
1914 


115 
115 
115 


10,005,585 
7,156,283 
4,777.158 


87,005 
62,055 
41,540 


109.4 
49.4 


164,710 
125,986 
98,545 


1,«5S 

1,096 
857 


67*1 

27.9 


1.65 
1.77 
2.06 


19.9 
14.1 


40 end 
over 


1919 
1918 
1914 


59 
59 
59 


10,887,179 
7,578,252 
4,451,082 


279, 158 
194,614 
114,150 


144.6 
70.5 


299,250 
200,061 
142,159 


7,675 
5,150 
5,645 


110.5 
40.7 


2.76 
2.64 
3. IS 


13.8 
17.2 



in the small cities. An inverse condi- 
tion obtains for the stores in the two 
city-groups when 1918 is compared 
with 1914. No recognition is taken 
of store size in Table 217, the basis 
of comparison being identical stores 
with different locations. The influ- 
ence of the size of store upon adver- 
tising expenditure is discussed later. 
In Table 218, the 154 stores are 
classified as in Table 217. This table 
compares, from year to year, the 
amounts of selling expense and adver- 
tising for stores located in cities of 
different size. For the 115 stores 
located in the small cities, selling ex- 
pense per store increased between 
1914 and 1919 by 85.4 per cent., and 
between 1914 and 1918 by 40.8 per 
cent. The corresponding percentages 
of increase in advertising were 67,1 
and 27.9, respectively. "When the 
expenditures for advertising are ex- 
pressed in terms of $100 of selling 



expense, the amounts decreased by 
9.8 per cent, between 1914 and 1919 
and by 9.1 per cent, between 1914 
and 1918. 

For the 39 stores in the large cities, 
the selling expense per store increased 
between 1914 and 1919 by 123.2 and 
between 1914 and 1918 by 61,3 per 
cent. The corresponding percentages 
of increase in the expenditures for 
advertising were, respectively, 110.5 
and 40.7. When the advertising ex- 
penditures are expressed in terms 
of selling expense, the amounts de- 
creased between 1914 and 1919 by 
5.7, and between 1914 and 1918 by 
12.8 per cent. 

When the two groups of stores are 
compared, it is found that the per- 
centages of increase in selling expense 
and advertising expenditure were 
greater for the stores located in the 
large cities. When the advertising 
expenditures are expressed in terms 



311 



of selling expense, however, the de- 
crease is smaller between 1914 and 
1919 for the stores in the large, than 
for those in the small cities. An in- 
verse condition holds for the decreases 
between 1914 and 1918. 

In Table 219 the 154 stores are 
classified by years and by location, 
the purpose being to show, in each of 
Ihe years, the relative amounts of 
advertising expenditures per $100 of 
total net sales for the stores as 
located. For the stores in the com- 
bined years the average amount ex- 
pended for advertising in relation to 
sales by the stores in the small cities 
was $1.78. The corresponding amount 
spent by the stores in the large cities 
was $2.80. That is, the average 
amount for the stores in the small 
cities was 77.4 per cent, and for the 
stores in the large cities, 121.7 per 



cent, of the average for all stores 
irrespective of location. Between 
1914 and 1918, and 1918 and 1919, 
the amounts decreased for stores 
located in the small cities. In those 
located in the large cities, there was 
a decrease between 1914 and 1918, 
and an increase between 1918 and 
1919. 

The basis of classification in Table 
220 is the same as that in Table 219, 
but the advertising expenditures are 
expressed as proportionate parts of 
selling expense. For the stores in the 
combined years, expenditures for ad- 
vertising constituted $18.88 of every 
$100 of selling expense for the stores 
in the small, and $22.99 for the stores 
in the large cities. Relatively, these 
amounts are 88.8 and 108.2 per cent., 
respectively, of the average for all 
stores. Between 1914 and 1918, and 



TABLE 218 

RELATION OF ADVERTISING TO SELLING EXPENSE, FOR 154 IDENTICAL STORES CLASSI- 
FIED BY SIZE OF CITY, 1919, 1918, AND 1914 





Years 


Number 

of 
Stores 


Selling Expense 


Advertising 


size 

of 
City 


Total 


Average Ajnoimt 
per Store 


Total 


Average Amount 
per Store 


Per $100 of 
Selling Expense 


(In OOO'b) 


Araovmt 


Par Cent. 
Increase 
over 1914 


Amount 


Per Cent. 
Increase 
over 1914 


Amount 


Per Cent. 
Decrease 
from 1914 


Total 
(Average) 


1919 

1918 
1914 


154 
154 
164 


$2,182,027 
1,609,671 
1,059,414 


tl4, 169 

10,452 

6,879 


106. 
51.9 


$463, 940 
326,047 
240,602 


$3,013 
2,117 
1,563 


92.8 
35.4 


$21.26 
20.26 
22.72 


6.4 
10. S 


Under 
40 


1919 

1918 
1914 


115 
115 
115 


896,863 
680,787 
483,712 


7,799 
5,920 
4,206 


85.4 
40.8 


1641,710 

125,986 
98,543 


1,432 

1,096 
857 


67.1 
27.9 


18.37 
18.51 
20.37 


9.S 
9.1 


40 and 
over 


1919 
1918 
1914 


39 
39 
39 


1,285,164 
928,884 
575,702 


32,953 
23,818 
14,762 


123.2 
61.3 


299,230 
200,061 
142,139 


7,673 
5,130 
3,645 


110.5 
40.7 


23.28 
21.64 
24.69 


5.7 
12.8 



312 



TABLE 219 

TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL 

NET SALES, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE 

OF CITY, 1919, 1918, AND 1914 





Years 


Number 

of 
Store- 
years 


Total 
Net Sales 


Total 
Advertising 


Advertising per $100 of Total Net Sales 


Size 
of 


Amoiant 
( 


For Cent. 


City 
(in 000' s) . 


G'-'^Phlc Actual 
) 20 40 60 80 100 120 140 




Total 
(Averago) 


462 


§44,635,499 


^1,030,669 


$2.30 




100,0 






Total 


1919 
1913 
1914 


154 
154 
154 


20,892,764 

14,714,515 

9,228,220 


463,940 
326,047 
240,682 


2.22 
2.22 
2.61 


96.5 

96.5 

113.5 


(Average ) 


i 




1 




! 




Total 
(Average ) 


345 


21,919,006 


339,239 


1.78 


77.4- 






Undsr 


1919 
1918 
1914 


115 
115 
115 


10,005,585 
7,136,233 
4,777,138 


164,710 

125,986 

98,543 


1.65 
1.77 
2.06 


71.7 
77.0 
89.6 


40 


! 




! 




1 




Total 
(Average ) 


117 


22,916,493 


641,430 


2.80 


121.7 






40 and 


1919 
1916 
1914 


39 
39 
39 


10,887,179 
7,578,232 
4,451,082 


299,230 
200,061 
142,139 


2.75 
2.64 
3.19 


119.6 
114.8 
138.7 


over 


^" 











Average $2.30 



1918 and 1919, the amounts decreased 
for the stores in the small cities, while 
between 1914 and 1918 they decreased 
and between 1918 and 1919 they in- 
creased for the stores in the large 
cities. The purpose of this table is to 
make readily comparable from year 
to year the amounts for identical 
stores when they are classified accord- 
ing to location. 

In Tables 214, 216, 218, and 220, 
advertising expenditures are ex- 
pressed as proportionate parts of 
selling expense. Wages and salaries 
constitute, on the average, for the 154 
stores considered, 66.7 per cent, of 



total selling expense. The changes in 
wages and salaries from year to year, 
therefore, affect the relation of expen- 
ditures for advertising to total selling 
expense. From year to year, as the 
proportions of total selling expense 
attributable to wages and salaries in- 
crease, the proportions attributable to 
advertising expenditures decrease, 
and vice versa. The ' ' other ' ' expenses 
properly chargeable to selling make 
up the balance of selling expense. 
The changes of these expenses from 
year to year are indicated in the 
tables which pertain to them.* 
* Pages 392 to 395. 



313 



TABLE 220 

TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF 

SELLING EXPENSE, FOR 154 IDENTICAL STORES CLASSIFIED BY 

SIZE OF CITY, 1919, 1918, AND 1914 





Years 


Hvnnber 

of 
Storo- 
yeara 


Total 

Selling 
Expense 


Total 
Advertising 


Advertising per flOO of Selling Expense 


City 
(In cco'i) 


Amount 


Per Cent. 


OrapMc Actual 
D 20 40 60 80 100 120 




Total 
(Averape) 


462 


$4,851,112 


11,030,669 


$21.25 


1 


100.0 




i 




1910 
1918 
1914 


154 
154 
154 


2,182,027 
1,609,671 
1,059,414 


465,940 
526,047 
240,682 


21.26 
20.26 
22.72 


100.0 

95.5 

106.9 


(Average) 


i 












Total 
(ATerago) 


945 


2,061,562 


589,239 


18.88 


88.8 




i 




1919 
1918 
1914 


115 
U5 
115 


896,865 
680,787 
485,712 


164,710 

125,986 * 
98,545 


1S.57 

18.51 

, 20.57 


86.4 
87.1 
95.9 


40 


: 








1 




Total 
(Average) 


117 


2,789,750 


641,430 


22.99 


108.2 




i 




1919 
19ia 
1914 


59 
59 
59 


1,285,164 
928,864 
575,702 


299,250 
200,061 
142, 139 


25.28 
2i.64 
24.69 


109.6 
101.4 
116.2 


over 


1 








i 



Average 121.25 



From Tables 217 to 220, inclusive, 
it may be conclude(3 as follows : First, 
advertising expenditures per $100 of 
total net sales decreased between 1914 
and 1918, and 1914 and 1919 for the 
stores when classified by location, the 
extent of decrease between 1914 and 
1919 being larger for the stores in 
small than for those in the large 
cities, and between 1914 and 1918 
larger for those in the large than for 
those in the small cities. Second, for 
the stores classified by location, ad- 
vertising expenditures per $100 of 
selling expense decreased between 
1914 and 1918, and 1914 and 1919, 



for stores in the two city-groups, the 
extent of the decrease between 1914 
and 1918 for the stores in the small 
being greater than for those in the 
large cities, and between 1914 and 
1918 greater for those in the large 
than for those in the small cities. 
Third, the amounts of advertising 
expenditure per $100 of total net sales 
are larger for the stores in the large, 
than for those in the small cities. 
Fourth, for the stores as a whole, the 
expenditures for advertising per $100 
of selling expense decreased between 
1914 and 1918, but increased between 
1918 and 1919. They increased be- 



314 



tween 1918 and 1919 for the stores 
in the large, and decreased for those 
in the small cities. 

B — Yearly Atnounts of Expenditure 
for Advertising per $100 of Total 
Net Sales and per $100 of Selling 
Expense, for Stores Classified hy 
Size and hy Size of City in Which 
Located* 1919, 1918, and 1914. 

In Tables 221 to 224, inclusive, the 
amounts of advertising expenditures 
per $100 of total net sales in the com- 

* Population figures are for 1920. 



bined and individual years are shown 
for stores of different size and with 
different location. The variations in 
these amounts are interesting. As the 
stores increase in size, no account 
being taken of location, the amounts 
in relation to sales increase. This 
condition, however, does not hold in 
the combined years for the stores 
located in the small cities, but it does 
hold over the entire range of sizes for 
the stores located in the large cities. 
The amounts are larger without ex- 
ception for the stores in the large 



TABLE 221 

TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL 

NET SALES, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE OF CITY 

AND STORE, 1919, 1918, AND 1914, COMBINED 



Size 

of 


Classified 

Total 
Hat Sales 
(la ooo'a) 


number 

of 
Store- 
yeara 


Total 
Met Sales 


Total 
Advertising 


Advertising per $100 of Total Net Sales 


A&otmt 

( 


Per Cent. 


(la ooo'a) 


Or«plil« 
20 40 60 80 100 120 14 


Actual 
> 




Total 
(Average) 


462 


$44,835,499 


$1,030,669 


$2.30 


1 


100.0 






Total 
(Average} 


Under |40 
$40 to $80 
$80 to llSO 

|180 & over 


129 

172 

117 

44 


3,590,553 

9,775,007 

15,695,639 

17,774,300 


60,972 
167,646 
319,703 
482,348 


1.70 
1.72 
2.33 
2.71 




73.9 

74.8 

101.3 

117.8 










1 




Total 
(Average ) 


345 


21,919,006 


389,239 


1.78 




77.4 


Unfler 
40 


Under $40 
|40 to |80 
|80 to $180 

$180 & ever 


121 

138 

77 

9 


3,317,538 
7,650,532 
8,832,022 
2,119,114 


56,128 
122,305 
175,202 

35,604 


1.69 
1.60 
1.98 
1.68 


73.5 
69.6 
86.1 

73.0 




J 
1 




Total 
(Average ) 


117 


22,916,493 


641,430 


2.80 


121.7 




j 




Uncer $40 
$40 to $80 
$80 to $180 

$180 & over 


8 
34 

40 
35 


273,215 
2,024,475 
4,963,617 
15,655,186 


4,844 
45,341 
144,501 
446,744 


1.77 
2.24 
2.91 
2.85 


77.0 


40 and 


1 


over 


i 


126.5 
123.9 




! 







Average $2.30 



315 



than for those of the same size in the 
small cities. A comparison of this 
sort is more satisfactory than one 
which includes the totals only. 

In view of the details shown in 
Tables 221 to 224, inclusive, it is 
unnecessary in the text discussion to 
indicate the characteristic amounts 
or the general relations w^hich they 
bear to each other in each of the 
different years. The reader may con- 
sult those in which he is interested. 

In Tables 225 to 228, inclusive, 
advertising expenditures per $100 of 



selling expense are shown for stores 
of different size and location. For 
the stores in the combined years, as 
the stores increase in size, advertising 
constitutes an increasing proportion 
of selling expense. This condition, 
however, holds only when no account 
is taken of the location of the stores. 
When they are classified by location, 
the amounts for the stores in the 
small cities decrease as the size of the 
stores increases, and for those in the 
large cities increase as the stores in- 
crease in size. For stores with sales 



TABLE 222 

TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL 
NET SALES, FOR 154 STORES CLASSIFIED BY SIZE OF CITY AND STORE, 1919 



Size 

of 

City 


Classified 

Total 
Jlet Sales 
(In OOO'a) 


Nimber 

of 
Stores 


Total 
Net Sales 


Total 
Advertising 


Advertising per $100 of Total Met Sales 


Amount 


Per Cent. 


(In OOO'a) 


Oraphlo . ^ , 
Actual 

J 20 40 60 80 100 120 140 




Total 
(Average ) 


154 

• 


§20,892,764 


$463,940 


$2.22 


1 


100.0 




! 
i 

1 


Total 
(Avenge ) 


Under $40 
$40 to §80 
$80 to $180 

$180 t over 


14 
57 
58 
25 


428,714 

3,222,458 

6,866,815 

10,374,767 


6,262 

42,797 
140,074 
274,807 


1.46 
1.33 
2.04 
2.65 


65.8 
59.9 
91.9 

119.4 








i 




Total 
(Average ) 


115 


10,005,585 


164,710 


1.65 


74.3 




i 


Under 
40 


Under $40 
$40 to $80 
$80 to $130 

$100 ti over 


14 

51 

44 

6 


428,714 
2,836,747 
5,255,410 
1,484,714 


6,262 
37,636 
95,437 
25,355 


1.46 
1.33 
1.82 
1.71 


65.8 
59.9 
82.0 
77.0 




I 




i 




Total 
(Average) 


39 


10,837,179 


299,230 


2.75 


123.9 




i 


40 and 
over 


Under $40 
$40 to $80 
$80 to $lo0 

$180 U over 


6 
14 
19 


335,721 
1,611,405 
8,300,053 


5,141 

44,637 

249,452 


1.33 
2.77 
2.81 


69.9 
124.8 

126.6 











tveraga $2.22 



316 



TABLE 223 

TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL 
NET SALES, FOR 154 STORES CLASSIFIED BY SIZE OP CITY AND STORE, 1918 



Size 
of 


Classified 

Total 
Net Sales 
(in OOO's) 


Bomber 

of 
Stores 


Total 
Bet Sales 


Total 
Advertising 


Advertising per ♦lOO of Total Het Sales 


Ajnotdt 


Per Cent. 


(la ooo'b) 


Qraphic I Actual 
20 40 60 80 100 120 140 




Total 
(Average ) 


154 


♦14,714,515 


♦326,047 


$2.22 




100.0 




i 


VotaJ 
(Average) 


Under |40 
|40 te |80 
♦80 to ♦180 

#180 at over 


42 

63 
35 
14 


1,256,795 
3,662,794 
4,090,203 
5,704,723 


19,197 

60,416 

98,491 

147, 943 


1.53 
1.65 
2.41 
2.59 


68.9 






108.6 
116.7 








i 




Total 
(Average) 


105 


7,136,283 


125,986 


1.77 


79.7 




^^^_" 


ttader 
40 


Itader #40 
♦40 te ♦so 
♦80 te ♦l80 

♦180 & over 


41 

49 

22 

S 


1,221,199 

2,776,272 

2,504,412 

634,400 


19,129 
43,829 
52,779 
10,249 


1.57 
1.58 
2.U 
1.62 


70.7 

7i.a 

95.0 
73.0 




■ 








Total 
(Average) 


S9 


7,578,232 


200,061 


2.64 


118.9 




i 


40 Bad 
over 


Itader ^40 
♦40 to ♦eo 

♦so to f 180 
$180 & over 


1 
14 
13 
11 


35,596 

886,522 

1,685,791 

5,070,323 


68 

16,587 

45,712 

137,694 


0.19 
1.87 
2.88 
2.72 


8.6 

84.2 

129.7 

122.5 




: 











Averags, ♦2.22 



"under $40,000, the advertising expen- 
ditures constitute a larger proportion 
of selling expense for the stores in 
the small than for those in the large 
cities, while for stores with sales in 
excess of this amount, an inverse con- 
dition obtains. 

Tables 226 to 228, inclusive, contain 
the data for the years 1919, 1918, and 
1914, respectively. From year to year 
for stores of different size and loca- 
tion, the advertising expenditures 
vary in amount and in direction of 
change. The nature of these varia- 



tions is evident from the detail of 
the tables. 

Tables 221 to 228, inclusive, may 
be summarized as follows : First, ad- 
vertising expenditures per $100 of 
total net sales increase as stores in- 
crease in size when no account is 
taken of location. When stores of 
varying size and location are com- 
pared, expenditures for advertising 
remain essentially constant for stores 
of different size, located in small 
cities, but increase with the size of 
stores for stores in the large cities. 



317 



Second, advertising expenditures per 
$100 of selling expense increase as 
stores increase in size. When stores 
are classified by size and by location, 
however, the amounts for the stores 
in the small cities decrease, and for 
those in the large cities increase, as 
stores increase in size. Certain ex- 
ceptions to this tendency occur in 
each of the different years under con- 
sideration. These, however, do not 
seriously disturb the general conclu- 
sions which have been drawn. 



E. — Summary. 

(1), The amounts spent for adver- 
tising per $100 of total net 
sales decreased between 1914 
and 1918, and remained con- 
stant between 1918 and 1919. 
This condition holds for the 
154 stores as a whole. For 
those w'ith sales less than 
$180,000, the amounts de- 
creased from year to year; 
while for those with sales 



TABLE 224 

TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL 
NET SALES, FOR 154 STORES CLASSIFIED BY SIZE OF CITY AND STORE, 1914 



81 to 

of 
City 


Claselfled 

Total 
Ket Sales 
(In OOO'b) 


number 

of 
Storee 


Total 
Bet Sales 


Total 

Advertising 


Advertising per $100 of Total Net Sales 




Per Cent. 


(In OOO'b) 


Amount 


Graphic | Actual 
) 20 40 60 80 100 120 140 




Total 
(Average) 


154 


19,228,220 


1240,682 


|2.61 




100.0 






Total 
(Average) 


Under ^ 
UO to |80 

♦80 to tieo 

$180 k over 


73 

52 

24 

5 


1,905,044 

2,889,745 
2,738,621 
1,694,810 


55,513 
64,433 
81,138 
69,598 


1.86 
2.25 
2.96 
3.52 


71.3 

85.4 

113.4 

134.9 
















Total 
(Average) 


US 


4,777,138 


98,543 


2.06 


78.9 




1 


Under 
40 


Under Uo 
♦40 to $80 
|80 to 4180 

llBO fc over 


66 
38 
11 


1,667,425 
2,037,513 
1,072,200 


'30,737 
40,820 
26,986 


1.84 
2.00 
2.52 


70.5 
76.6 
96.6 




; 




1 

1 






Total 
(Average ) 


39 


4,451,082 


142,139 


3.19 


122.2 








Under $40 
$40 to $80 


7 
14 
13 

5 


237,619 

852,232 

1,666,421 

1,694,810 


4,776 
23,613 
54,152 
59,698 


2.01 
2.77 
3.25 
3.52 


77.0 
106.1 
124.5 
134.9 


40 end 
over 


; 






«lon 1. „...- 1 






1 





Average $2.61 



318 



TABLE 225 

TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OP 

SELLING EXPENSE, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE 

OF CITY AND STORE, 1919, 1918, AND 1914, COMBINED 





Classified 

Total 
Net Sales 
(In OOo'b) 


Number 

of 
Store- 
years 


Total 
SelUng 
£xpense 


Total 
Advertising 


Advertising per $100 of Selling Expenaa 


Size 

of 

City 

(In OOO's) 




Per Cent. 


) 20 40 60 80 100 120 




Total 
(Average) 


462 


$4,861,112 


$1,030,669 


$21.25 




100.0 








Under $40 
$40 to $80 
$80 to $180 

$180 & over 


129 

172 

117 

44 


304,954 

913,357 

1,491,801 

2,141,000 


60,972 
167,646 
319,703 
482,348 


19.99 
18.35 
21.43 
22.53 


94.1: 

86.4 
100.8 
106.0 


Total 


j 


(Average) 










• 




Total 
(Aver age) 


345 


2,061,362 


389,239 


18.88 


88.8 




i 




Uhder $40 
$40 to $80 
$80 to $180 

&180 & over 


121 

138 

77 

9 


276,723 
670,140 
892,563 
221,936 


56,128 
122,305 
175,202 

35,604 


20.28 
18.25 
19.63 
16.04 


95 .4 
85.9 
92.4 
75.5 


Under 
40 


! 




; 








Total 
(Average ) 


117 


2,789,760 


641,430 


22.99 


108.2 




i 




Under $40 
$40 to $80 
$80 to $180 

$180 ae over 


8 
34 

40 
35 


23,231 

243,217 

599,238 

1,919,064 


4,844 

45,341 

144,501 

446»744 


17.16 
18.64 
24.11 
29.28 


80.8 

87.7 

113.6 

109.6 


40 and 
over 


; 













Average $21.25 



of $180,000 and over, the 
amounts decreasecJ between 
1914 and 1918, and increased 
between 1918 and 1919. 

(2). The proportion of selling ex- 
pense attributable to adver- 
tising decreased between 1914 
and 1918. This holds for all 
stores, as well as for stores 
classified by size. Between 
1918 and 1919, the amount 
for all stores increased. The 



direction of change from year 
to year was not uniform for 
stores classified by size. 

(3). Advertising in terms of either 
sales or selling expense de- 
creased by a larger percent- 
age between 1914 and 1919, 
and by a smaller percentage 
between 1914 and 1918 for 
stores in small than it did for 
those in large cities. 



319 



TABLE 226 

TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF 
SELLING EXPENSE, FOR 154 STORES CLASSIFIED BY SIZE OF CITY AND STORE, 1919 





ClBBslfled 

Total 
Hot Sales 
(In OOO'e) 


Number 

of 
Stores 


Total 
SallJng 
Expense 


Advertising 


Advertising per $100 of Selling Expense 


size 

of 

City 

(In OOO's) 


Amount 

C 


Per Cent. 


<^^P*'^<= Actual 
) 20 40 60 80 100 120 




Total 
(Average ) 


154 


$2", 182, 027 


$463,940 


$21.26 




loa^ 








Undor $40 
$40 to $80 
$60 to $180 

$180 & over 


14 
57 
58 
25 


29,018 

246,207 

719,436 

1,187,566 


6,262 

42,797 

140,074 

274,807 


21.58 
17.58 
19.47 
23.14 


101.5 
81.7 
91.6 

ioe.8 


Total 
(Average) 
















Total 
(Average ) 


115 


896,863 


164,710 


18.57 


86.4 








Under $40 
$40 to $80 
$80 to $180 

$180 & over 


14 

51 

44 

6 


29,018 

211,678 
509,410 
146,757 


6,262 
37,656 
95,437 
25,356 


21.58 
17.79 
18.73 
17.28 


101.5 
83.7 
88.1 
81.9 


T3Vider 
40 
















Total 
(Average) 


S9 


1,285,164 


299,230 


23.28 


109.5 






40 and 
over 


Under $40 
$40 to $80 
$80 to $180 

$180 & over 


6 
14 
19 


54,529 

210,026 

1,040,609 


5,141 

44,637 

249,452 


14.89 
21.25 
23.97 


70.0 
100.0 
112.7 











Average $21.26 



(4). The amounts of advertising 
expenditure per $100 of total 
net sales for all stores and for 
those located in large cities 
increase as stores increase in 
size, while they remain prac- 
tically constant for stores in 
small cities. 

(5). For stores of a given size, 
advertising expenditures in 
terms of sales are higher in 
large than in small cities. 

(6). The proportions of selling 



(7). 



expense attributable to adver- 
tising increase with the size 
of store for all stores and for 
those located in large cities, 
while they decrease as the 
stores increase in size for 
stores in small cities. 

For stores of given size, the 
amounts of advertising ex- 
penditure per $100 of selling 
expense are generally higher 
in large cities than for stores 
in small cities. 



320 



TABLE 227 

TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF 
SELLING EXPENSE, FOR 154 STORES CLASSIFIED BY SIZE OF CITY AND STORE, 1918 





Classified 

Total 
Net Sales 
(In OOO's) 


Number 

of 
Stores 


Total 
Balling 
Expense 


Total 
Advertising 


Advertising par $100 of Selling Expense 


of 

city 


Amount 


Per Cent. 


<ln OOO'e) 


Graphic Actual 
5 20 40 60 80 100 120 140 




Total 
(Average) 


154 


$1,609,671 


$526,047 


$20.26 




100.0 








Under $40 
$40 to $80 
$80 to $180 

$180 8c over 


42 
63 
35 
14 


101,621 
545,293 
445,138 
717,619 


19,197 

60,416 

98,491 

147,943 


18.89 
17.50 
22.13 
20.62 


93.2 
86.4 
109.2 
101.8 


Total 




CAverage) 














Total 
(Average) 


lis 


680,787 


125,986 


18.51 


91.4 




I 




Under $40 
$40 to $80 

$80 io $180 
$180 & over 


41 

49 

22 

3 


99,515 
244,788 
261,507 

75,179 


19,129 
45,829 
52,779 
10,249 


19.82 
17.90 
20.20 
13.63 


94.9 
68.4 
99.7 
67.5 






40 










Total 
(Average) 


59 


928,884 


200,061 


21.54 


106.5 




- 


«0 and 


Under $40 
$40 to $80 
$80 to $1S0 

$180 fc over 


1 
14 
13 
U 


2,108 
100,505 
183,851 
642,440 


68 

16,587 

46,712 

157,694 


S.25 
16.50 
24.87 
21.45 


15.9 

81.4 

122.8 

105.8 


ever 













Avec&KO $20.26 



2. — YEARLY AMOUNTS OF EXPENDITURE 
FOR ADVERTISING IN RELATION TO 
THE AMOUNTS OF STOCK CARRIED, 
FOR STORES CLASSIFIED BY YEARS, 
BY SIZE, AND BY RATES OF STOCK 
TURNOVER. 

On pages 53 to 85, and 204 to 
226, respectively, the amounts of 
selling expense and of wages and 
salaries were discussed for stores 
classified by the amounts of stock 
carried. In this section, expenditures 
for advertising are similarly treated. 



A. — Yearly Amounts of Expenditure 
for Advertising per $100 of Total 
Net Sales and per $100 of Selling 
Expense, 1919, 1918, and 1914. 

For the study of the amounts of 
advertising expenditure per $100 of 
total net sales in relation to the size 
of inventories, the records of 149 
stores are available for the years 1914, 
1918, and 1919. The amounts are 
contained in Table 229. For the 
combined years, the stores which had 
inventories less than $20 per $100 of 



321 



TABLE 228 

TOTAL SELLIXG EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF 
SELLING EXPENSE, FOR 154 STORES CLASSIFIED BY SIZE OF CITY AND STORE, 1914 





ClaBslfled 

Total 
Net Sales 
(In OOO'b) 


Mumbar 

of 
Stores 


Total 

Selling 
Expense 


Total 
Advertising 


Advertising per $100 of Selling Expense 


Slza 
of 


Amount 


Per Cent. 


(In coo's) 


Oraphlo Actual 
20 40 60 80 100 120 




Total 
(Average ) 


154 


$1,059,414 


$240,682 


$22.72 




lOO.O 




^^^^^^^ 




Dnder*^ 
^ to $80 
|80 to |180 

$180 k over 


73 

&2 

24 

5 


174,315 
321,857 
327,227 
236,015 


35,513 
64,433 
81,138 
59,598 


20.37 
20.02 
24.80' 
25.25 


89.7 

88.1 

109.2 

lU.l 


Total 




(Average) 










1 

1 




Total 
(Average) 


US 


483,712 


98,543 


20.37 


89.7 




1 


tftider 
40 


Dfader t40 
$40 to $80 
♦80 to $180 

♦l80 * over 


66 
38 
U 


148,192 
813,674 
121,846 


30,737 
40,820 
26,986 


20.74 
19.10 
22.15 


91.3 
84.1 
97.5 


• 




t 
1 




Total 
(Average) 


39 


675,702 


142,139 


24.69 


108.7 








Under |40 
$40 to $80 
$80 to $180 

$180 4 over 


7 

14 

13 
5 


26,123 
108,183 
205,381 
236,015 


4,775 
23,613 
54,152 
59,593 


18.28 
21.83 
26.37 
25.25 


80.S 

96.1 

U6.1 

lU.l 


40 and 


> 


over 













Average $22.72 



total net sales spent $1.78 for adver- 
tising in terms of sales. This, like the 
amounts of total selling expense and 
wages and salaries for this group of 
stores, is relatively small. For the 
stores which had inventories between 
$20 and $40 per $100 of total net 
sales, the advertising expenditure was 
$2.47. From this figure as a maxi- 
mum, the expenditures decrease to 
$1.94 for the stores which had inven- 
tories of $60 and over. That is, if 
exception is made for stores with in- 
ventories of less than $20, expendi- 



tures for advertising for the stores in 
the combined years decrease as the 
inventories in relation to sales in- 
crease. A similar relationship obtains 
in each of the different years. 

For the 149 stores in 1914, the aver- 
age amount of expenditure for adver- 
tising per $100 of total net sales was 
$2.63. In 1918 it was $2.23 and in 
1919, $2.24. That is, there was a 
decrease between 1914 and 1918 and 
a slight increase between 1918 and 
1919. With the exception, in each of 
the years, of the stores which had the 



322 



lowest inventories, the amounts of 
advertising expenditure decreased be- 
tween 1914 and 1918, and 1918 and 
1919. It is this comparison which is 
of most significance, the totals for the 
respective years being affected by the 
amounts of the sales and by the size 
of the inventories in relation to sales. 
When the amounts of expenditure 
for advertising per $100 of sales for 
stores with inventories of different 
size are reduced to a common basis 



by expressing them in terms of the 
amount sold per $1 of inventory, they 
increase, in the combined years, from 
$0.31 for the stores with smallest, to 
$1.36 for the stores with largest rela- 
tive inventories. Similar increases 
occur in each of the years considered. 
The inverse relationship between 
the average amount of inventory per 
$100 of total net sales and the average 
amount of advertising expenditure, 
similarly measured, is shown in Table 



TABLE 229 

AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES PER AMOUNT SOLD PER $1 

OF INVENTORY, FOR 149 IDENTICAL STORES CLASSIFIED BY AMOUNT OP 

INVENTORY PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 





itasowtt of 

Inventory 

per $100 of 

Total 

Vet Sale* 


Sumber 

of 
Store- 
yeara 


Advertising per $100 of Total Net Salea 


Advertising per JlOO of Total Net Sales per 
Amount Sold per $1 of Inventory 


Xaort 




Per Cent. 


Amount 

c 


Per Cent. 




Amovoat 

t 


Oraphle 1 

^ 1 Actual 
20 40 60 80 100 120 140 


""^'^ 1 Actual 
20 40 60 80 100 120 140 160 




Total 
(Average) 


447 


$2.32 




100.0 


$0.B7 




100.0 






^^H 




Uhder $20 
$20 to $40 
$40 to $60 
$60 Ji over 


14 
168 
177 

68 


1.78 
2.47 
2.16 
1.94 


76.7 
106. E 
93.1 

83.6 


0.31 
0.74 
1.08 
1.36 


35. 6 


(Avsraga ) 




8S.I 
124.1 

156.3 


















^^^^M ■ 




Total 
(Average ) 


149 


2.24 


96.6 


0.73 


83.9 






^^^^ 




(Jnder $20 
$20 to $40 
$40 to $60 
$60 i over 


7 
83 
51 

8 


2.00 
2.32 
2.02 
1.72 


86.2 
100.0 
87.1 
74.1 


O.JS 
0.70 
1.01 
1.20 




40.2 
80. S 

116.1 
137.9 


1919 










1 




..^ 


: 




Total 
(Average) 


149 


2.23 


96.1 


0.90 


103.4 




^^^^1 


- 


1918 


UQdar $20 
$20 to $40 
$40 to $60 
$60 k over 


3 
46 
60 
40 


C.93 
2.43 
2.17 
1.94 


40.1 
104.7 
93.5 
83.6 


0.16 
0.73 
1.09 
1.36 


18.4 
83.9 
125.3 
156.3 






; 




; 








1 




Total 
(Average) 


149 


2.63 


113.4 


1.14 


131.0 










Dmler $20 
$20 to $40 
$40 to $60 
$60 fc over 


4 
39 
66 
40 


2.35 
3.14 
2.32 
?.00 


101.3 
135.3 
100.0 
66.2 


0.41 
0.94 
1.16 
1.40 


47.1 
108.0 
133.3 
160.9 


1914 














■■ 




I _. . 





Average $2.32 



Average $0.87 



323 



230. For the combined years, stores 
which spent less than $1 in adver- 
tising in terms of sales had on the 
average an inventory of $40.94. The 
amount of inventory for those which 
spent between $1 and $2 was slightly 
larger, and for those that spent more, 
considerably less than this amount. 
When the separate years are con- 



sidered, the inventories, with a few 
exceptions, decrease as the amounts 
spent for advertising per $100 of 
total net sales increase. The average 
amount of inventory for the stores in 
the combined years is $37.54. For 
1914 it was $43.44, for 1918, $40.53, 
and for 1919, $32.84. That is, the 
inventories decreased between 1914 



TABLE 230 

TOTAL NET SALES, INVENTORY, AND AMOUNT OF INVENTORY PER $100 OF TOTAL NET 

SALES, FOR 149 IDENTICAL STORES CLASSIFIED BY AMOUNT OF ADVERTISING 

PER $100 OP TOTAL NET SALES, 1919, 1918, AND 1914 





Amount of 

Advertising 

per |100 of 

Total 

net Sales 


number 

of 
Store- 
years 


Total 
Net Sales 


Total 
Inventory 


Inventory per llOO of Total Het Sales 


Years 


Amount 


Per Cent. 




1 Aetufll 
3 20 40 60 80 100 120 140 




Total 
(Average) 


447 


143,599,972 


$16,369,406 


♦37.54 




100.0 








Under $1 
»1 to »2 
$2 to tS 
|3 i over 


105 
147 
114 

61 


6,153,722 
10,474,625 
15,040,118 
11,951,507 


2,519,091 
4,359,751 
6,161,173 
4,320,391 


40.94 
41.62 
34.32 
36.29 


109.1 

110.9 

91.4 

96.7 


Total 




(Average ) 






i 




1 




Total 
(Average ) 


149 


20,303,641 


6,667,056 


32.84 


67.5 




^^^^ 1 




Under $1 
♦l to |2 
|2 to $3 
Is & over 


41 

47 
42 
19 


3,106,729 
4,460,395 
8,386,889 
4,349,628 


1,135,040 
1,634,516 
2,491,097 
1,406,403 


36.53 
36.65 
29.70 
32.33 


97.3 
97.6 


1919 


i 




; 




: 


86.1 








Total 
(Average) 


149 


14,322,667 


5,804,340 


40.53 


108.0 




i 




Under |l 
ll to |2 
♦2 to $3 
|3 fc over 


se 

49 
38 
24 


2,156,926 
3,542,012 
4,480,247 
4,143,482 


963,421 
1» 469, 279 
1,736,775 
1,614,865 


45.59 
41.48 
38.77 
38.97 


121.4 
110.5 
103.3 


191B 














1 






Total 
(Average) 


149 


8,973,664 


3,898,010 


43.44 


115.7 








under 11 
ll to »2 
|2 to |3 
Is & over 


26 
61 
34 

se 


690,067 
2,472,218 
2,172,982 
3,438,397 


400,630 
1,265,956 

933,301 
1,308,123 


45.01 
50.80 
42.95 
38.04 


119.9 
135.5 


1914 












101.3 


















Average |37.54 





324 



TABLE 231 

TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF 

SELLING EXPENSE, FOR 149 IDENTICAL STORES CLASSIFIED BY AMOUNT OF 

INVENTORY PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 





Amount of 

Inventory 

per $100 of 

Total 

Not Sales 


Number 

of 
Store- 
years 


Total 
Salllug 
Expense 


Total 
Advertising 


Advertising per $100 of Selling 
Expense 


Tears 


Amoimt 


Per Cent. 




Graphic ^^^,„^ 
3 20 40 6p 80 100 1:^0 




Total 
(Average ) 


447 


$4,745,829 


$1,009,377 


$21.27 


: 


100.0 




: 




Under $20 
$20 to $40 
$40 to $60 
$60 & over 


14 
168 
177 

88 


172,900 
3,088,085 
1,128,967 

355,877 


36,654 
655,340 
243,739 

73,644 


21.20 
21.22 
21.59 
20.69 


99.7 

99.8 

lOl.S 

97.S 


Total 




(Average ) 










j 




Total 
(Average ) 


149 


2,135,072 


453,840 


21.26 


100.0 








Under $20 
$20 to $40 
$40 to $60 
$60 le over 


7 
85 
51 

8 


105, 7U 

1,649,518 

345,965 

33,878 


24,173 

348,645 

73,301 

7,721 


22.87 
21.14 
21.19 
22.79 


107.5 
99.4 
99.6 

107.1 


1919 






! 












Total 
(Average) 


149 


1,073,249 


319,845 


20.33 

15.44 
19.53 
22.29 
20.75 


95.6 




i 


1918 


Dhder $20 
$20 to $40 
$40 to $60 
$60 & over 


5 
46 
60 
40 


32,117 
937,441 
427, 462 
176,229 


4,960 

183,038 

95,288 

36,559 


72.6 

91.8 

104.8 

97.6 
















Total 
(Average) 


• 149 


1,037,608 


235,692 


22.72 


106.8 




i 




Under $20 
$20 to $40 
$40 to $60 
$60 fc over 


4 
39 
66 
4* 


35,072 
501,126 
355,540 
145,770 


7,521 

123,657 

75,150 

29,364 


21.44 
24.68 
21.14 
20.14 


100.8 

116.0 

99.4 

94.7 


1914 














: 



Average $21.27 



and 1918, and 1918 and 1919, the 
margin of difference between 1918 
and 1919 being 2.6 times as great as 
between 1914 and 1918. 

In Table 231, for the same stores as 
those considered in Tables 229 and 



230, the average amounts of adver- 
tising expenditures are expressed as 
proportionate parts of selling expense. 
For the stores in the combined years, 
the average is $21.27. In 1914 it was 
$22.72, in 1918, $20.33, and in 1919, 



325 



$21.26. For the stores in the com- 
bined years and in 1919 and 1914, 
the amounts per $100 of selling ex- 
pense remain essentially constant as 
inventories in relation to sales in- 
crease.* Approximately $21 might be 
said to be the characteristic amount. 
From Tables 229 to 231, inclusive, 
it may be concluded: First, if the 
stores with smallest inventories in 
relation to sales are excepted, the 
amounts of advertising expenditure 
per $100 of total net sales decrease 
as the amounts of inventories per 
$100 of total net sales increase. 
Second, the amounts of advertising 
expenditure per $100 of selling ex- 
pense are essentially constant for 
stores having different amounts of 
inventory in relation to sales.* 

B. — Yearly Amounts of Expenditure 
for Advertising per $100 of Total 
Net Sales and per $100 of Selling 
Expertise, for Stores Classified^ hy 
Size, 1919, 1918, and 1914. 

In the foregoing tables, the stores 
are not classified according to size. 
Such a classification is made in 
Tables 232 to 235, inclusive. 

In Table 232 the amounts of ad- 
vertising expenditure are shown for 
stores in the three years 1914, 1918, 
and 1919, combined. On the basis of 
the experience of 447 store-years, the 
average amount spent for advertising 
per $100 of total net sales is $2.32, 

* For a somewhat larger number of stores, 
and with wider groupings of inventories in 
relation to sales, as shown in Table 246, the 
amounts decrease, as inventories in relation 
to sales increase in size. The same condi- 
tion tends to hold for the stores in 1914. 



For those with sales under $40,000, 
it is $1.67; for those with sales of 
$40,000 to $80,000, $1.69; for those 
with sales of $80,000 to $180,000, 
$2.39 ; and for those with sales of 
$180,000 and over, $2.72. That is, 
the amounts increase as the size of 
the stores increases. "When the stores 
are classified by size, and further by 
the amounts of inventory per $100 of 
total net sales, expenditures for ad- 
vertising generally tend to increase 
as the inventories per $100 of total 
net sales increase. However, to this 
general rule for the stores in the 
combined and in the different years, 
there are so many exceptions that it 
is difficult to generalize. The reader 
is advised to consult the tables for 
the direction of change for the dif- 
ferent groups of stores. 

In Tables 233 to 235, inclusive, the 
amounts of advertising expenditure 
per $100 of total net sales are shown 
for stores classified as in Table 232 
for the years 1919, 1918, and 1914, 
respectively. It is unnecessary, in 
view of the consideration already 
given to expenditures for advertising 
for the combined years, to consider 
these tables in detail. Year to year 
comparisons of the total amounts 
have already been made and an in- 
spection of the tables will show how 
the amounts vary for the stores of 
different size in each of the years. 
In a general way, the relationships 
which obtain in the combined, also 
hold for the individual years. 

In Tables 232 to 235, inclusive, 
advertising expenditures are ex- 
pressed in terms of sales alone. In 



326 



TABLE 232 

TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL 

NET SALES, FOR 149 IDENTICAL STORES CLASSIFIED BY SIZE AND BY 

AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 

1919. 1918, AND 1914, COMBINED 



Claasiried 


A-nount of 

Inventory 

per $100 of 

Total 

»et Saleo 


Number 

of 
Store- 
7ear> 


Total 
Net Sales 


Total 
AdvertlBlng 


Adi/irtlslng per $100 of Total Net Sales 


Total 
Net Sales 
(In 000' ») 


Amount 


Per Cent. 


Qraphle Actual 
20 40 60 80 100 120 140 




Total 
(Average) 


447 


$43,599,972 


$1,009,377 


$2.32 




100.0 






Total 

(Average) 


Under $20 
$20 to $40 
$40 to $60 
$60 le over 


14 
168 
177 

88 


2,059,425 
26,478,436 
U, 263. 282 

3,798,829 


36,654 
665,340 
243,739 

73,644 


1.78 
2.47 
2.16 
1.94 


76.7 
106.5 


: 
















Total 
(Average ) 


127 


3,532,911 


69,024 


1.67 

0.79 
1.69 
1.85 
1.52 


72.0 


ttider $40 


Under $20 
$20 to $40 
$40 to $60 
$60 k over 


X 
18 
E2 
56 


28,953 

560,460 

1,412,525 

1,530,993 


228 

9,477 

26,112 

23,207 


94.1 
72.8 
79.7 
65. 5 




i 

1 




Total 
(Average) 


165 


9,360,348 


168,486 


1.69 


72.8 


$40 to $eo 


Dbder $20 
$20 to $40 
$40 to $60 
$60 & over 


6 
52 

82 
2S 


402,009 
3,083,049 
4,458,869 
1.416,421 


4,904 
54,480 
74,251 
24,851 


1.22 
1.77 
1.67 
1.75 


52.6 
76.3 
72.0 
75.4 




Total 
(Average) 

Dbder $20 
$20 to $40 
$40 to $60 
$60 & over 


112 

6 
60 
40 

7 


13,121,494 


313,119 


2.39 






1 
• 




$80 to $180 


655,107 
7,076,841 
4,638,131 

851,415 


6,305 
156,342 
122,886 
25,586 


l.SO 
2.21 
2.65 
3.01 


64.7 

95.S 

U4.8 

129.7 
















Total 
(Average ) 


43 


17,585,219 


478, 743 


2.72 


U7.2 




i 




Ubder $20 
$20 to $40 
$40 to $60 
$60 & over 


2 
58 
S 


1,073,376 

15,758,086 

753,767 


23,217 

435,041 

20,490 


2.16 
2.76 
2.72 


93.1 
119.0 
117.2 


$180 tc over 


; 











Average $2.33 



327 



Table 236 they are expressed in terms 
of sales for the amount sold per $1 
of inventory.* 

* The method by which this unit is com- 
puted is explained on page 4, item 17. 



For the stores in the combined 
years, $0.87 was expended for adver- 
tising per $100 of total net sales for 
the amount sold for each $1 of in- 
ventory. In 1914 the corresponding 



TABLE 233 

TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OP TOTAL 

NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF 

INVENTORY PER $100 OF TOTAL NET SALES, 1919 



Cl*aalfi«il 

Totaa 
list SaJss 
(in OOO'fl) 



Amount of 

Inventory 

per $100 of 

Total 

Het Balsa 



Hombsr 

of 
Storaa 



Total 
Advsrtlslog 



Advertlalng per |100 of Total Net Sales 



Oi'spl^o Actual 

20 40 60 80 100 120 140 160 



total 
(Average) 



Total 
(ATerage ) 

Uodor $20 
(20 to (40 
(40 to (60 
(60 i over 



(20,303.641 



(453,840 



1,208,118 

lSi01S,367 

3,628,188 

448,968 



24, 175 

348,645 

73,301 

7,721 



Total 
(Average ) 



428,714 



Itadar (40 



Under (20 
(20 to (40 
(40 to (CO 
(63 k over 



68,054 
244,012 

U6;64e 



6,262 

895 
4,334 

1,053 



Total 
(Average) 



5,082,152 



38,705 



(40 t« (80 



Cnd^r (20 
$20 to (40 
^40 te (80 

(60 b oTer 



150,276 
1,287,723 
1,472,999 

171,154 



1,224 
le-,723 
19,317 

1,441 



too to (180 




6,607,089 



137,666 



384,466 
4,382,158 
1,679,299 

161«16e 



3,573 
84,725 
44,121 

6,247 



|1B0 k OTer 



Total 
(Average) 

Dnder (20 
(20 to (40 
(40 to (60 
(so k OTer 



10,185,686 

673,376 

9,280,432 

£31,878 



271,207 

19,376 

246,302 

6,529 



(2.24 



2.00 
2.32 
2.08 
1.72 



1.32 
1.78 
0.89 



1.26 



0.81 
1.30 
1.31 
0.84 



2.08 



O.0Z 
1.95 
2.65 
S.26 



2.66 

2.88 
2.65 
2.98 




100.0 



89.3 
103.6 
90.2 
76.8 



58.9 
79.6 
39.7 



S6.S 

36.2 
68.0 

58.5 
57.5 



92.9 



41.5 

86.2 
U7.4 
145.6 



118.8 

128.6 
118.9 
106.9 



Average (2.24 



328 



TABLE 234 

TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL 

NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF 

INVENTORY PER $100 OF TOTAL NET SALES, 1918 





Amount of 

Inventory 

per $100 of 

Total 

Het Sales 


Humber 

of 
Stores 


Total 
Net Salea 


Total 
Advertising 


Advertising per $100 of Total Net Sales 


Classiflad 

Total 
Het Salea 


Amount 

( 


Per Cent. 


(in OOO'b) 


Graphic 
) 20 40 60 80 100 120 140 160 


Actual 




Total 
(Avoraga) 


149 


$14,322,667 


$319,845 


$2.23 




100.0 




. ,1 1 


Total 
(Average) 


Under $20 
$20 to $40 
$40 to $60 
$60 & over 


3 

46 
60 
40 


530.649 
7,517,748 
4,389,893 
1,884,377 


4,960 

183,038. 

95,288 

36,559 


0.93 
2.43 
2.17 
1.94 


41.7 

109.0 

97.3 

87.0 






: 




{ 
{ 




Total 
(Average ) 


42 


1,256,795 


19, 197 


1.53 


68.6 


ttadar $40 


Dnder $20 
$20 to $40 
$40 to $G0 
$60 k over 


6 
13 
23 


209,528 
381,673 
665,594 


3,875 
6,486 
8,836 


1.85 
1.70 
1.33 


83.0 
76.2 
59.6 




t 








Total 
(Average ) 


60 


3,501,019 


57,778 


1.65 


74.0 


$40 to $80 


Ondor *20 
$20 to $40 
$40 to $60 
$60 !c over 


2 

15 
29 


130,649 

901,852 

1,632,061 

836,457 


1,119 
15,355 
26,154 
15,150 


0.86 
1.70 
1.60 
1.81 


38.6 
76.8 
71.7 

ei.2 












Total 
(Average ) 


33 


3,860,130 


94,927 


2.46 

2.14 
2.57 
3.29 


110.3 






$30 to $180 


Onder $20 
$20 to $40 
$40 to $60 
$60 & over 


14 

16 

3 


1,623,524 

1,854,280 

382,326 


54,667 
47,687 
12,573 


96.0 
115.2 
147.5 












1 




Total 
(Average) 


14 


5,704,723 


147,943 


2.59 


116.1 






$160 k over 


Onder $20 
$20 to $40 
$40 to $60 
$60 & over 


I 
11 
2 


400,000 

4,732,844 

521,879 


3,841 
129,141 
14,961 


0.96 
2.70 
2.87 


43.0 
121.1 
128.7 








; 














Average $2.23 





329 



TABLE 235 

TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL 

NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF 

INVENTORY PER $100 OF TOTAL NET SALES, 1914 



Claaslflea 

Total 
>at Sales 
(la OOO'a) 



Anount of 

Inventory 

per $100 of 

Total 

Net Sales 



Total 
Hot Sales 



Total 
Advertising 



Advertising per 4lOO of Total Net Sales 



Graphic 



Total 
(Average ) 



Onder J 40 



ti'J to JSO 



Total 
(Average) 



$8,973,664 



$235, 692 



Under $20 
|20 to $40 
$40 to $60 
$60 &. over 



320,658 
9, 942, 321 
3,245,201 
1,465,484 



7,521 

123,657 

75,150 

29,364 



Total 
(Average) 



1,847,402 



33,565 



Under $20 
$20 to $40 
$40 to $60 
$60 & over 



28, 933 
282,878 
786,840 
748,751 



228 

4,707 

15,292 

13,358 



Total 
(Average) 



2,777,177 



62,003 



Under $20 
$20 to $40 
$40 to $60 
$60 fc over 



121,084 

893,474 

1,353,609 

408,810 



2,561 
22,402 
28,780 

6,260 



Total 
(Average) 



2,654,275 



$80 to $180 



Under $20 
$20 to $40 
$40 to $60 
$60 St over 



170,641 
1,071,159 
1,104,552 

307,923 



80,526 

4,732 
36,950 
51,078 

7,7^6 



Total 
(Average) 



1,694,610 



tl80 & over 



Under $20 
$20 to $40 
$40 to $60 
$60 fc over 



1,694,810 



59,598 



69,598 



$2.63 



2.35 
3.14 
2.32 
2.00 



1.82 



0.79 
1.66 
1.94 
1.78 



2.23 

2.12 
2.51 
2.13 
2.02 



3.03 

2.77 
3.45 
2.81 
2.52 



100.0 

89.4 
119.4 
88.2 
76.0 



69.2 

30.0 

63.1 
73.8 
67.7 



84.8 



80.6 
95.4 
81.0 
76.6 



115.2 

105.3 

131.2 

106.6 

95.6 



Average $2.63 



330 



TABLE 236 

AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES PER AMOUNT SOLD PER $1 

OF INVENTORY, FOR 149 IDENTICAL STORES CLASSIFIED BY SIZE AND BY 

AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 

1919, 1918, AND 1914 



cu<«tn*4 

Total 
■•t B»l»t 
(ta-ooo**) 



par iyoo of 

Total 
lat Salaa 



Orapiilc 
»1 



par 11 of Igveptory 



OrapMa 
to tl «2 



Oraphie 

»1 «2 



440 to tao 



leo to tiso 



Dndop »20 


0.31 


(20 to (40 


0.74 


»40 to S60 


1.08 


$60 it OTor 


i.se 



Ooder (20 

(20 to (40 
(40 to ttO 
(60 4 orar 



Osdar (20 
(20 to (40 
(40 to (so 
(60 h ovor 



Undor (20 
(20 to (40 
(40 to (eo 

(60 t> 07sr 



JJbAut (30 
(20 to (40 
(40 to (SO 

(60 • oTor 



0.94 



0.14 
O.Sl 
0.9S 
1.06 



0.77 



O.Sl 

a.ss 

0.84 
1.23 



0.94 



0.26 
0.6S 
l.SS 



0.76 



0.3S 
0.63 
1.36 



&7araga (0.87 



0.5S 
0.70 
l.Ol 
1.20 



0.40 

ces 

0.62 



0.S2 



0.14 
0.59 

0.66 
0,6S 



0.7S 



O.U 
0.56 
1.32 
Z.2S 



0.7S 



0.50 
0.80 
1.19 



ATcraga (0.73 



0.16 
0.73 
1.09 
1.36 



0.56 
0.85 
0.93 



0.15 
O.Sl 
0.80 
1.27 



0.64 
1.29 
2.30 



0.17 
O.Sl 
1.44 



AToraee (0.90 



(1.14 



0.41 
0.94 
1.16 



1.02 



0.14 

0.60 
0.97 
1.2B 



l.OO 



0.S7 
0.7S 
1.07 
1.41 



1.24 



0.48 
1.04 
1.41 
1.76 



Averago (1.14 



amount was $1.14; in 1918, $0.90; 
and in 1919, $0.73. That is, the 
amounts decreased from 1914 to 1918, 
and 1918 to 1919. When the records 
of the stores in the three years are 
combined, the amounts spent for ad- 
vertising per $100 of sales for the 
amount sold per $1 of inventory, 
increase as the inventories per $100 
of total net sales increase. For the 



stores with inventories of less than 
$20 per $100 of total net sales, the 
average amount is $0.31. From this 
as a minimum, the amounts increase 
to $1.36 for the stores having inven- 
tories of $60 and over in relation to 
their sales. Similar increases also 
characterize the stores as a whole in 
each of the years. ]\Ioreover, for each 
group of stores when classified by 



331 



TABLE 237 

TOTAL NET SALES, INVENTORY, AND AMOUNT OF INVENTORY PER $100 OF TOTAL NET 

SALES, FOR 149 IDENTICAL STORES CLASSIFIED BY SIZE AND BY 

AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, 

1919. 1918, AND 1914, COMBINED 



Classified 

Total 
Vat Selea 


Amouct of 

Xdvartlsln^ 

p«r ilOO of 

Total 

Not Scaea 


Mambor 

of 
Store- 
yaara 


Total 
Bet Sales 


Total 
Inventory 


Inventory pap <;100 of Total Kat Sales 


Amount 


Per Cent. 


(In OOO'l) 


ar^P^<^ 1 Actual 
20 40 60 80 100 120 140 160 




Total 
(Avarags) 


447 


^.599,972 


116,369,406 


f37.54 




100.0 








Under tl 
*1 to »2 
(2 to >3 
^5 fc oTor 


106 
147 
114 

ei 


6,153,722 
10,474,625 
15,040,118 
11,951,507 


2,519,091 
4,359,751 
6,161,173 
4,329,391 


40.94 
41.62 
34.32 
36.29 


109.1 

110.9 

91.4 

96.7 


Total 




(iverago) 






: 








Total 
(Averaga) 


127 


3,532,911 


1,909,518 


56.31 


150.0 




i 




OnJar #1 
U to »2 
«2 to »3 
|3 i over 


37 
51 
21 
18 


1,110,360 

1,383,638 

556,572 

482,291 


580,538 
813,497 
336,330 
260,159 


52.28 
58.79 
60.25 
53.94 


139.3 
1S6.6 
160.5 
143.7 


tJader Uo 










1 




j 




Total 
(Average) 


166 


9,360,348 


4,254,795 


45.46 


121.1 








Dndw »1 
*1 to »2 
t2 to )3 
|3 Ic over 


51 
58 
37 
19 


2,845,600 
3,224,357 
2,163,431 
1,121,960 


1,238,760 

1,497,100 

1,022,722 

496,213 


43.53 
46.43 
47.16 
44,23 


116.0 
123.7 
125.6 
117.8 


»40 to |80 










"""^^ 








Total 
(Avaraga ) 


112 


13,121,494 


5,193,131 


39.58 


105.4 








Uodor $1 
tl to «2 
♦2 to i3 
t3 & over 


IS 
31 
35 
31 


1,635,795 
3,643,631 
4,249,058 
3,693,010 


536,834 
1,386,974 
1,584,201 
1,685,122 


32.82 
38.07 
37.28 
46.90 


87.4 
101.4 

99.3 
124.9 


$80 to $180 














i 




Total 
(Average) 


43 


17,585,219 


4,931,962 


28.05 


74.7 




Onder $1 
♦l to »2 
»2 to 13 
$3 ti over 


2 

7 
2i 
19 


561,967 
2,222,949 
8,066,057 
6,734,246 


162,965 

662,180 

Z,21B,9SO 

1,887,897 


28.99 
29.79 
27.51 
28.03 


77.2 
79.4 
73,3 
74.7 


|180 & over 






! 



Average $37. M 



332 



TABLE 238 



TOTAL NET SALES, INVENTORY, AND AMOUNT OF INVENTORY PER $100 OF TOTAL NET 

SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF 

ADVERTISING PER $100 OF TOTAL NET SALES, 1919 



CUsairisd 

Total 
Hat Balaa 


Araount of 

Advert 1 a Ing 

per $100 of 

Total 

Net Salaa 


number 

of 
Stores 


Total 
Net Salea 


Total 
Inventory 


Inventory per flOO of Total Hoi Sales 


Amount 

( 


Far Cent. 


(In OOO's) 


'^"P^^^" 1 Actual 
) 20 40 60 80 100 120 140 160 180 




Total 
(Avorago) 


149 


t20,303,641 


t6, 667, 056 


t32.e4 


1 


100.0 








Onder |l 
»1 to »2 
«e to $3 
^3 h orer 


41 
47 
43 
19 


3,106,729 
4,460,395 
8,386,889 
4,349,623 


1.135,040 
1,634,516 
2,491,097 
1,406,403 


36.53 
36.65 
29.70 
32.33 


U1.2 

111.5 

90.4 

98.4 


Total 
(iTeraga) 








zzzm^' 




i 




Total 
(Average ) 


14 


428,714 


215,607 


50.29 


153.1 




i 




Under $1 
»1 to »2 
»2 to U 
|3 & ever 



8- 
1 
2 


191,955 
135,428 
28,261 
73,070 


95,983 

75,435 

6,749 

37,440 


50.00 
65.70 
23.88 
51.24 


152.2 
169.6 
72.7 
156.0 


Itadar Uo 














Total 
(Average) 


55 


3,082,152 


1,280,953 


41.56 


126.6 








Under $1 
$1 to (2 
t2 to t3 

tS Jc over 


22 
21 
10 
2 


1,273,878 

1,133,971 

565,595 

108,713 


606,329 

475,162 

248,228 

61,234 


39.75 
41.90 
43.89 
47.19 


121.0 
127.6 
133.6 
143.5 


#40 to tao 


















Total 
(Average) 


66 


6,607,089 


2,366,933 


35^.82 


109.1 




i 




Under tl 
»1 to «2 
(2 to $3 
tS & over 


1£ 
17 
IS 
9 


1,306,591 
1,907,262 
2,233,765 
1,109,471 


437,851 
655,613 
793,690 
479,779 


33.51 
94.97 
94.75 
43.24 


102.0 
104.7 
105.8 
131.7 


#80 to *180 














i 




Total 
(Average) 


24 


10,185,686 


2,803,563 


27.58 


83.8 




^^^^^ 




Under tl 
tl to t2 

tZ to tS 
tS te ever 


1 
4 
19 

6 


334,310 
1,283,754 
6,509,268 
3,058,374 


94,877 

428,906 

1,442,430 

837,950 


ss.sa 

33.36 
26.18 
27.40 


■IHi^MMH ' 


86.4 
101.6 
79.7 

83.4 


|U0 & OTsr 










; 




1 , 



Average t32.84 



size, the advertising expenditures, 
measured in this unit, increase as the 
inventories per $100 of total net sales 
increase. This, of course, is to be 
expected in view of the method of 
classifying the stores. By the use of 



such a measure, stores with different 
sales and inventories are reduced to 
a unit basis. 

Table 236 should be considered in 
connection with the details in Tables 
232 to 235, inclusive. Moreover, it is 



333 



of interest to compare Table 236 with 
Tables 26 and 143 which show respec- 
tively the amounts of selling expense 
and the amounts of wages and salaries 
expressed in this form. 



Tables 237 to 240, inclusive, for the 
combined and individual years, show 
the amounts of inventories per $100 
of total net sales for stores classified 
by size and by amounts of advertising 



TABLE 239 

TOT.VL NET SALES, INA^EXTORY, AND AMOUNT OF INVENTORY PER $100 OF TOTAL NET 

SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF 

ADVERTISING PER $100 OF TOTAL NET SALES, 1918 



ClaBBlflod 

Tot»l 
Yet Sales 


Amouot of 

AdvertlBins 

per llOO of 

Total 

Net Seles 


Nur.ber 

of 
Etoreo 


Total 
Met Sales 




Inventory per }100 of Total Bet Sales 


Total 
Inventory 


Amount 

C 


Per Cent. 


(In COO'i) 


Graphic Actual 
20 40 60 80 100 120 140 160 




Total 
(Average) 


149 


114,322,667 


Is, 804, 340 


140.53 




100.0 








Onder |l 
(1 to |e 
iz to ts 

Is & over 


58 
49 
S8 
24 


2,156,926 
3,542,012 
4,480,247 
4,143,482 


983,421 
1,469,279 
1,736,775 
1,614,865 


45.59 
41.48 
38.77 
38.97 


112.5 

102.3 

95.7 

96.2 


Total 




( Average) 






: 








Totf.1 
(Avert ge) 


42 


1,256,795 


734,523 


58.44 


1 


144.2 








Dnder }1 
|1 to $2 
♦2 to 13 
Is & over 


12 

21 

6 

3 


387,840 

595,175 

175, 690 

98,090 


228,185 
544,768 
107,597 
53,973 


58.83 
57.93 
61.24 
55.02 


145.2 
142.9 
151.1 
135.8 


Under #40 










1 




1 




Total 
( Average) 


60 


3,501,018 


1,729,460 


49.40 


121.9 








Dnder il 
$1 to t2 
|2 to $3 
|3 t ever 


22 
17 

16 
S 


1,212,225 
972,151 
995,546 
321,097 


588, 165 
487,603 
480,980 
172,712 


48.52 
50.16 
48.31 
53.79 




119.7 
123.8 
119.2 
132.7 


|40 to teo 














; 




Total 
(Average) 


33 


3,860,130 


1,741,662 


45.12 


111.3 




i 


teo to 1180 


Under $1 
|1 to |2 
|2 to 13 
Is It over 


3 
S 
10 

12 


329,204 
1,035,471 
1,138,028 
1,367,427 


98,983 
403,054 
494,286 
745,259 


30.07 
58.92 
43.43 
54.90 


74.2 

96.0 

107.2 

135.5 




; 




■l^^^M^MI 








Total 
(Averc.ee) 


14 


6,704,723 


1,598,795 


28.03 


69.2 


tUO fc orer 


under ll 
♦l to t2 
|2 to |3 
Is fc ever 


1 
3 
6 

4 


227,657 

939,215 

2,170,983 

2,566,868 


68,088 
233,874 
653,912 
642,921 


29.91 
24.90 
30.12 
27.16 


73.8 
61.4 
74.5 
67.0 



Average |40.55 



334 



TABLE 240 

TOTAL NET SALES, INVENTORY, AND AMOUNT OP INVENTORY PER $100 OF TOTAL NET 

SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF 

ADVERTISING PER $100 OF TOTAL NET SALES, 1914 



Classified 

Total 
Net Sbles 


Anount of 

Advertising 

per $100 of 

Total 

Xet Sales 


Number 
of 

Stores 


Total 
Net Sales 


Total 
Inventory 


Inventory per llOO of Total Net Sales 


Amount 


Per Cent. 


(In OOO'a) 


Graphic Actual 
20 40 60 80 100 120 140 160 




Total 
(Average ) 


149 


18,973,664 


13,398,010 


|43.44 




100.0 




: 




Under ll 
ll to |2 
|2 to |3 
|3 & over 


26 
51 
34 

38 


890,067 
2,472,218 
2,172,982 
3,438,397 


400,630 
1,255,956 

933,301 
1,308,123 


45.01 
50.80 
42.95 
38.04 


103.6 

116.9 

98.9 

87.6 


Total 
(Average) 


^^^M 


^""T"" 




: 




; 




Total 
(Average ) 


71 


1,847,402 


1,039,388 


56.26 


129.5 




i 




Under |1 
ll to |2 
|2 to |3 
|3 & over 


19 
25 
14 
IS 


530,565 
653,086 
352,621 
3U,131 


256,364 
393,294 
220,984 
168,746 


48.32 
60.22 
62.67 
54.24 


111.2 
138.6 
144.3 
124.9 


Under $40 


















Total 
(Average ) 


50 


2,777,177 


1,244,382 


44.81 


103.2 




^^^^^^^ i 




Under ll 
|1 to |2 
|2 to Is 
|3 J: over 


7 
20 
11 
12 


359,502 

1,U8,236 

607,290 

692,150 


144,266 
634,335 
293,514 
272,267 


40.13 
47.78 
48.53 
39.34 


92.4 
110.0 
1U.3 

90.6 


$40 to Sao 


^1 




i 




! 




; 




Total 
(Average ) 


23 


2,654,275 


1,084,636 


40.86 


94.1 




1 


^0 to ^180 


Under |l 
ll to |2 
|2 to |3 
|3 fc over 


6 

7 
10 


700,898 

827,265 

1,126,112 


328,327 
296,225 
460,084 


46.84 
35. 8i 
40.86 


107.8 
82.4 
94.1 




i 








i 

1 

• 

1 




Total 
(Average ) 


5 


1,694,810 


629,604 


31.26 


71.9 


#180 & over 


Under |l 

ll to |2 

|2 to |3 

|3 & over 
1 


3 
S 


385,806 
1,309,004 


122,578 
407,026 


31.77 
91.09 


73.1 
71.6 



Avsrag* |43.44 



335 



expenditure in relation to sales. These 
tables support the detail contained in 
Tables 232 to 235, inclusive. 

In considering Table 230, it was 
pointed out that the amounts of in- 
ventories per $100 of total net sales 
vary inversely with the amounts of 
advertising expenditure per $100 of 
total net sales. But in this table, 
stores were not classified by size. 
When store-size is considered, as in 
Tables 237 to 240, inclusive, no such 
general tendency is observed. The 
larger the store, the smaller the in- 
ventories, but for stores of the same 
size, the amounts of inventory are 
substantially the same for stores hav- 
ing different amounts of advertising 
expenditure per $100 of total net 
sales.* In other words, store-size is 
more important in determining the 
amount of inventory in relation to 
sales than is the amount of adver- 
tising expenditure. 

In Tables 241 to 244, inclusive, 
the amounts expended for advertising 
are expressed in terms of selling ex- 
pense for stores classified by size and 
by the amounts of their inventories in 
relation to sales. When the stores for 
the combined years are considered, it 
is found that the advertising expendi- 
tures per $100 of selling expense in- 
crease, on the whole, as stores increase 
in size. The average for the three 
years for all the stores is $21.27. For 

* For the stores with sales of $80,000 to 
$180,000, inventories per $100 of sales in- 
crease with advert isinf^ per $100 of sales in 
the combinetl years, and in 1919 and 1918. 
The same condition holds in 1919 and 1918 
for the stores with sales of $40,000 to 
$80,000. 



those stores with annual sales under 
$40,000, it is $19.79; for those with 
annual sales of $40,000 to $80,000, it 
is $18.06; for those with annual sales 
of $80,000 to $180,000, it is $21.67; 
and for those with annual sales of 
$180,000 and over, $22.53. When the 
entire group of stores is considered, 
irrespective of size, but in accordance 
with the amounts of inventory in 
relation to sales, advertising expendi- 
tures remain essentially constant pro- 
portions of selling expense. When 
the stores are classified by size, more- 
over, while the proportions increase 
as stores increase in size, they show 
no regular direction of change with 
changing inventories for the different 
size-groups. It is difficult to gener- 
alize with respect to them in view of 
the divergent tendencies. The tables 
give the detail for the combined and 
individual years. By means of the 
graphic summaries, the relationships 
which obtain between them may be 
readily compared. 

It should be remembered in con- 
sulting these tables that a group of 
identical stores has been used. From 
year to year, however, the stores vary 
in sales and in the amounts of their 
inventories. Inventories, as a whole, 
were lower in 1918 than in 1914, and 
lower in 1919 than in either of the 
other years. Accordingly, as may be 
seen from Tables 242 to 244, inclusive, 
not only is the number of stores dif- 
ferent from year to year in each of 
the size-groups, but also different in 
each of the inventory groups. The 
changes may be illustrated as follows : 
In 1914, 71 of the stores had sales 



336 



TABLE 241 

TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF 

SELLING EXPENSE, FOR 149 IDENTICAL STORES CLASSIFIED BY SIZE AND 

BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET 

SALES, 1919, 1918, AND 1914, COMBINED 



Classified 


Amoimt of 

Inventory 

per 5 100 of 

Total 

Net Salee 


Himber 

of 
Store- 
yeajra 


Total 
Selling 
Expense 


Total 
Advertising 


Advertising per $100 of Selling Expense 


Total 
Net eales 


Amount 

( 


Per Cent. 


(In 000' b) 


Orapbic Actual 
) 20 40 60 60 100 120 140 




Total 
(Average ) 


447 


$4,745,829 


$1,009,377 


$21.27 




100. 








Onder $20 
iZO to $40 
$40 to $60 
$60 k over 


14 
168 
177 

88 


172, 900 
3,088,085 
1,128,967 

355,877 


36,654 
655,340 
243,739 

75,644 


21.20 
21.22 
21.59 
20.69 


99.7 

99.8 

101.5 

97.5 


Total 
(Average ) 


! 










1 




Total 
(Average ) 


127 


298,231 


59,024 


19.79 


93.0 




i 




Under $20 
$20 to $40 
$40 to $60 
$60 & over 


1 
18 
52 
56 


948 

54,036 

112,294 

130,953 


228 

9,477 

26, U2 

23,207 


24.05 
17.54 
23.25 
17.72 


U3.1 
82.5 

100.3 
89.3 


ODdar |40 


! 




; 




; 




1 




Total 
(Average) 


166 


877,524 


158,486 


18.06 


84.9 




i 




Under $20 
$20 to $40 
$40 to $60 
$60 & over 


6 
52 
82 
25 


29,622 
283,795 
428,579 
135,528 


4,904 
54,480 
74,251 
24,851 


16.56 
19.20 
17.32 
18.34 


77. » 
90.5 
81.4 

ee.e 


|40 to $80 


1 












i 




Total 
(Average) 


112 


1,445,029 


313,119 


21.67 


101.9 




^^^^^ 


too to tiso 


Under $20 
$20 to $40 
$40 to $60 
$60 &: over 


5 

60 

40 

7 


53,399 
802,675 
499,659 

89, 396 


8,305 

156,342 

122,886 

25,586 


15.55 
19.48 
24.59 
28.62 




73.1 

91.6 

11S.6 

154.6 




^^^i 




^'^i^ 




; 




Total 
(Average) 


43 


2,125,045 


478,748 


22.53 




105.9 










Under $20 
$20 to $40 
$40 to $60 
$60 & over 


2 

38 

3 


88,931 

1,947,679 

88,435 


23,217 
436,041 
80,490 


26.11 
22.34 
23.17 




122.8 


fieo & over 




105.0 






108.9 




i 



Avarago (21.27 



337 



TABLE 242 

TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OP 

SELLING EXPENSE, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF INVENTORY PER $100 OP TOTAL NET SALES, 1919 



Claaeiried 

Total 



(In oOO'i) 



AaouDt of 

Inventory 

par $100 of 

Total 

Nat Sales 



Total 
Selling 
Expense 



Total 
Advertising 



Advertising par $100 of Selling Expense 



Per Cent. 



Oraphlc 



Total 
(Average ) 



Under ^40 



|40 t« |80 



♦eo to $180 



liao & over 



Total 
(Average) 



♦2,135,072 



$453,840 



$21.26 



Ondar $20 
$20 to $40 
$40 to $60 
$60 8c over 



105, 7U 

1,649,518 

345,965 

33,878 



24,173 

348,645 

73.301 

7,721 



Total 
(Average) 



29,018 



6,262 



dnder $20 
$20 to $40 

$40 to $eo 

$60 & over 



6,275 
15,797 
6,946 



Total 
(Average) 



233,843 



Coder $20 
$20 to $40 
$40 to $60 
$60 & over 



7,320 

94,720 

122,592 

9,2U 



Total 
(Average) 



700,800 



Under $20 
$20 to $40 
$40 to $60 
$60 & over 



54,307 
465,124 
183,648 

17,721 



Total 
(Average) 



1,171,411 



Under $20 
$20 to $40 
$40 to $60 
$60 !c over 



64,084 

1,083,399 

23,928 



895 
4,334 
1,033 



38,705 



1,224 
16,723 
19,317 

1,441 



137,666 



3,573 
84,725 
44,121 

5,247 



271,207 



19,376 

246,302 

5,529 



22.87 
21.14 
21.19 
22.79 



14.26 

27.44 
14.87 



16.55 



16.72 
17.66 
15.76 
15, 6A 



19.64 



10.41 
18.22 
24.02 
29.61 



23.15 



30.24 
22.73 
23.11 



100.0 

107.6 
99.4 
99.7 

107.2 



67.1 

129.1 

69.9 



77.6 



78.6 
83.1 
74.1 
73.6 



92.4 



49.0 

85.7 

113.0 

139.5 



108.9 



142.2 
106.9 
108.7 



Average $21.26 



338 



under $40,000. In 1918, there were 
42 with sales of this amount, and in 
1919 there were 14. Moreover, in 
1914, 29 or 41 per cent, of the 71 
stores, had inventories of $60 and 
over. In 1918, 23, or 55 per cent. 



of the 42 stores, had inventories of 
this size, and in 1919, 4, or 29 per 
cent, of the 14 stores, had inventories 
of this size. Similar changes in other 
groups characterize the stores from 
year to year. 



TABLE 243 

TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OP 

SELLING EXPENSE, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF INVENTORY PER $100 OF TOTAL NET SALES, 1918 





Aaoant of 

Inventory 

p«r tlOO of 

Total 
net Salee 


HoBber 

of 
Stores 


Total 
Selling 
Expense 


Total 
Advertising 


Advertising per $100 of Selling acpense 


Cluilflsd 

Total 
Fet S<as* 


Anosnt 

C 


Per Cent. 


(la OOO's) 


Graphic 
) 20 40 60 80 100 120 140 160 IflO 


Actual 




Total 
(Average) 


149 


$1,573,249 


$319,845 


$20.33 




100.0 








Onder $20 
$20 to $40 
$40 to #60 
$60 k over 


5 
46 

60 

40 


32,117 
937,441 
427,462 
176,229 


4,960 
183,038 
95,288 
36,559 


15.44 

19.53 
22.29 

20.-75 


75.9 

96.1 

109.6 

102.1 


Total 


: 
















Total 
(Average) 


42 


101,621 


19,197 


18.89 


92.9 




1 


Oidar t40 


Under $20 
$20 to $40 
$40 to $60 
$60 k over 


« 
13 
25 


17,520 
27,892 
66.209 


3,875 
6,486 
e,8S6 


22.12 
23.25 
15.72 


* 
108.8 
114.4 
77.3 








; 




Total 
(Average) 


«0 


531,968 


67,778 


17.41 


85.6 




^^^^ 


$40 to $00 


Dnder $20 
J20 to $40 
$40 to $60 
$60 & over 


2 

15 
29 
14 


7,270 
97,097 
144,693 
82,898 


1,U9 
15,355 
26,154 
15,150 


15.39 
15.81 
18.08 
18.28 


75.7 
77.8 

86.9 
89.9 




t 








Total 
(Average) 


33 


422,051 


94,927 


22.49 


110.6 




i 


(80 to »ieo 


ITuder $20 
$20 to $40 
$40 to $60 
$60 Ji over 


14 

16 
3 


194,559 
190,370 
37,122 


84,667 
47,687 
12,573 


17.82 
2S.05 
33.87 


87.7 
123.2 
166.6 




^^^^ 




""'^^" 








Total 
(Average ) 


14 


717,619 


147,943 


20.62 












Onder $20 
$20 to $40 
$40 to $60 
$60 i over 


1 
11 
2 


24,847 

628,265 

64,507 


3,841 
129,141 
14,961 


15.46 
20.56 
23.19 


76.0 
101.1 


(IBO & over 


"" 













Average $20.35 



339 



Another group of stores, somewhat 
larger than that considered above, is 
available in 1919 for the study of 
advertising expenses in relation to 
sales and selling expense. The de- 
tails for this study are contained in 
Tables 245 and 2-46. The stores are 
classified by size and by the amounts 
of inventory per $100 of total net 
sales. 

In Table 245 for 282 stores, the 
advertising expenditure per $100 of 
total net sales is $2.25. For 149 
stores, as shown in Table 233, the 
corresponding figure was $2.24. As 
the stores increase in size, the amounts 
expended for advertising per $100 of 
total net sales increase. In spite of 
the fact that approximately twice as 
many stores as in Table 233 are here 
considered, the differences in the 
amounts are small. This suggests 
again the fact that the experience 
available for study, even with the 
fewer stores, is adequate for safe 
generalization. 

In Table 245, the amounts of adver- 
tising expenditure are measured in 
terms of sales alone and also in terms 
of sales per stock turnover.* It is 
this latter measure which is of pri- 
mary interest in this connection. The 
average amount expressed in this 
manner for the entire group of stores 
is $1.02. The smallest amount, char- 
acterizing the stores with sales be- 
tween $40,000 and $80,000, is $0.76. 
The largest amount, applying to the 
stores with sales of $80,000 to $180,- 
000, is $1.05. Over the entire range 

• The method by which this unit is com- 
puted is explained on page 4, item 19. 



of sizes, the amounts increase as the 
stores increase in size, but by a lesser 
percentage than they do when ex- 
pressed in terms of sales alone. That 
is, stock turnover in stores of increas- 
ing size acts as a compensating factor 
to the increased expenditures for 
advertising, measured in terms of 
sales alone. 

Interest lies, however, not only in 
the amounts for stores of different 
size, but also in those for stores of a 
given size, but with different amounts 
of inventory per $100 of total net 
sales. For the stores as a whole, and 
when classified by size, advertising 
expenditures per $100 of total net 
sales per stock turnover increase with 
the amounts of inventory per $100 of 
total net sales. That is, large inven- 
tories in 1919 in relation to sales cor- 
respond to large advertising expendi- 
tures per $100 of total net sales per 
stock turnover, and small inventories 
per $100 of total net sales correspond 
to small advertising expenditures per 
unit of sales per stock turnover. 

The value of Table 245 lies in the 
use of the more complex method of 
expressing advertising, since by this 
measure the variations in the turn- 
over rates in the different stores are 
reduced to a unit basis. This table 
by itself and in connection with Table 
233 merits careful study. 

Table 246 shows for the 282 stores, 
classified as in Table 245, the amounts 
of advertising expenditure in terms 
of selling expense alone and of selling 
expense per stock turnover. While 
the amounts of advertising per $100 
of selling expense tend neither to 



340 



TABLE 244 

TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF 

SELLING EXPENSE, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF INVENTORY PER $100 OF TOTAL NET SALES, 1914 



ClasslfJad 

Total 
Bet Sales 


Anount of 

Invontory 

per $100 of 

Total 

Het Sales 


Homber 

of 
Stores 


Total 
Solllns 
Sxpenae 


Total 
Advertising 


Advertising. per $100 of Selling bqwnsa 


Amount 


Far Cont. 


(In OOO's) 


9 20 40 60 80 100 120 




Total 
(Average ) 


149 


$1,037,508 


$256,692 


$2E.72 








! 






Under $20 
$20 to $40 
$40 to $60 
$60 & over 


4 
99 
66 
40 


95,072 
501,126 
965,540 
145,770 


7,521 

123,657 

75,150 

29,964 


21.44 
24.68 
21.14 
20.14 


94.4 

108.6 


Total 
(Averaga ) 


; 








1 






i 






Total 
(Average) 


71 


167,592 


99,566 


20.09 






1 






Onder $20 
$20 to $40 
$40 to $60 
$60 fc over 


1 
10 
91 
29 


948 
90,241 

68,605 
67,798 


228 
4,707 
16,292 
19,938 


24.06 
15.56 
22.29 
19.67 




tbdar $40 




68.5 






86.6 








Total 
(Average ) 


60 


311,729 


62,009 


19.89 


87.5 






$40 to $eo 


Under $20 
$20 to $40 
$40 to $60 
$60 8c over 


2 

18 

26 

8 


15,092 

91,978 

161,294 

43,419 


2,561 
28,402 

28,780 
8,260 


17.04 
24.36 
17.84 

19.02 


75.0 

107.2 

76.5 

83.7 
















Total 
(Average ) 


29 


922,178 


80,S2« 


24.99 


110.0 








Under $20 
$20 to $40 
$40 to $60 
$60 k over 


1 

9 

10 

3 


19,092 
142,892 
125,641 

34,555 


4,792 
96,950 
91,078 

7,766 


24.79 
25.86 
24.74 
22.48 


109.1 

113.8 

108.9 

98.9 


$80 to $180 














! 




Total 
(Average ) 


S 


236,015 


69,598 


25.25 


111.1 




! 


$180 fc over 


Utader $20 
$20 to $40 
$40 to $60 
$60 k ovar 


S 


256,015 


59,598 


25.25 


Ul.l 




i 



Avera^ $22.72 



341 



increase nor to decrease regularly as 
inventories increase, the amounts per 
$100 of selling expense per stock 
turnover * rapidly increase with an 
increase in the size of the inventory 
in terms of sales. This is true not 
only for all stores, but also for stores 
of a given size. 

From Tables 232 to 246, inclusive, 
it may be concluded as follows: 
First, advertising expenditures per 

• The method by which this unit is com- 
puted is explained on page 4, item 21. 



$100 of total net sales increase as 
stores increase in size. Second, ad- 
vertising expenditures per $100 of 
total net sales for stores irrespective 
of size decrease as the amounts of 
inventory per $100 of total net sales 
increase. Third, for stores of a given 
size, but with different amounts of 
inventory in relation to sales, the 
direction of advertising expenditures 
per $100 of total net sales, while 
tending on the whole to increase with 
the size of the inventories, is uncer- 



TABLE 245 



TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL 

NET SALES PER STOCK TURNOVER, FOR STORES CLASSIFIED BY SIZE AND BY 

AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1919 



Cluairiad 


teotmt of 
Inrentorr 
(Mr »100 of 
Tot«l 
1st S*U* 


BoBlMr 

of 
Storaa 


MTertlatng par tlOO of tottl Hat S&laa 


'AOrartlalag tor tloo of Total Hat Salaa 
par Stock Turnover 


Total 
ll<t Salas 
(la OOO's) 


AAcunt 


»ar Cent. 


iaotmt 


Par Cent. 


'^f^' 1 Aotual 
20 «0 60 80 100 120 140 


*^P"« 1 /lotual 
20 40 60 60 100 120 140 160 ISO 200 




Total 
(&T«rag9) 


288 


ts.ss 




100.0 


*1.02 


! 


100.0 








To -..I 


ttijar »?0 
tCO to UO 


17 

1S9 

112 


2.29 

2.39 
1.81 


101.3 
106.2 
80.4 


0.52 
1.00 
1.29 


51.0 
96.0 

ire.s 






j 

^^^^^^^ ! 






1 

1 
j 




Tc;il 


3S 


1.17 


62.0 


0.78 


76.5 


rh>aT Uo 


«3o to i:«o 

»40 » oT.r 


10 
23 


1.06 

l.as 


47.1 
64.7 


0.50 
0.9S 


49.0 
93.1 




»>tal 
(ATsra,:?*! 


10« 


l.ST 


60.9 


0'.78 


74.5 


(Ms t* tso 


tt*ler t.:o 
«SC to (Uo 
t40 k o,,r 


S 
49 
B8 


1.3S 
l'.4S 
1.28 


81.8 
69.8 

8a.« 


a.js 
a.87 

0.83 


32.4 
68.7 
83.3 








?otja 

(*Tor»j3) 


«e 


t.OO 


68. a 


1.08 


102.9 




1 




•80 U lUO 


ITUSar tto 
t«0 to »«0 
Ho a> OTor 


6 

es 

90 


0.81 
l.Sl 
8.34 


96.0 
84.9 
104.0 


0.19 
0.87 
1.S6 


18.6 
85.3 
192.9 


















M 


«.90 


124.4 


1.00 


98.0 




i 






tto to Mo 


» 
89 

1 


S.SJ 
2.87 
2.3* 


113.3 
127.6 

los.a 


0.67 
1.10 
1.9S 


S5.9 

107 .a 

194.x 


lUOk mr 














i 



ATttr«g« i2.2S 



Averago %\,0Z 



342 



TABLE 246 



AMOUNT OP ADVERTISING PER $100 OF SELLING EXPENSE PER STOCK TURNOVER, FOR 

STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER 

$100 OF TOTAL NET SALES, 1919 





itaouiit of 

Inventory 

p«r $100 cf 

TotBl 

!Iet Sales 


Hunber 

of 
Etorea 


Advertising per 


(100 of 


Sailing Expenae 


Advertising per (100 of Sellli^ Bxj>«n9* 
per Stock Turnover 


Claeslfled 
Total 


Anonst 




fer 


Cent. 


Anount 


Par Cent. 


(in OOO'a) 


3 20 40 


Oraphlo 
60 60 


1 Actual 
100 120 140 


*'"="° 1 Actual 
3 20 40 60 60 100 120 140 160 180 20O 




Total 
(Avorogo) 


282 


$22.15 




100.0 


(10.07 




100.0 






j 




Undor $20 
tso to Uo 
t40 k ovor 


17 

153 
112 


25.28 
22.14 
20.50 


114.1 

100.0 
92.6 


5.75 
9.23 
14.G* 


57.1 
91.7 
145.4 


Tot«l 
(Avorae«) 








I i 
j 

j 

• 
1 
t 
j 










i 




Total 
(Average) 


S3 


19.59 


88.4 


13.06 


129 .7 








1 
1 


Ondsr i*a 


tinder ^20 
$20 to t40 
Uo t over 


10 
2S 


1S.6S 
20.01 


84.1 

90.5 


8.87 
15.39 


88.1 
152.3 






""^ 


1 








: 




Total 
(Average ) 


106 


18.39 


83.0 


10.22 


101.5 








'"■■^" 




(Tnder t20 
$20 to (40 
Uo 4 over 


5 

45 
58 


23.70 
20.73 
16. S« 


107.0 
C5.6 
7S.9 


S.64 
9.42 
10.91 


56.0 
93.5 

108.9 


$40 to *80 






■ j 
j 

i 




















Total 
(Average) 


SS 


19.71 


89.0 


10.37 


103.0 




— 




! 

i 


Sao to tiso 


Dndar (20 
(20 to (40 
(40 k over 


5 
65 
90 


S.22 
IS. 62 
25,13 


41.6 
84.1 
104.4 


2.20 
8.49 
15.42 


2i.a 

64.0 
153.1 






""^ 






i 






Total 
(Average) 


45 


24.62 


111.2 


8.79 


87.3 










Dnd«r (20 
(20 to (40 
(40 k over 


9 
15 

1 


27.52 
24.06 
2S.U 


124.2 
108.6 
104.3 


6.12 


60.8 
91.9 
191.3 


iieo i over 














1 







Avorage €£2.13 



Average $10,07 



tain for some of the groups in the 
different years. Fourth, when the 
amounts of advertising expendi- 
ture are expressed per $100 of 
total net sales for the amounts sold 
per $1 of inventory, they decreased 
between 1914 and 1918, and 1918 and 
1919, for stores classified by size. 
Fifth, expenditures for advertising 
per $100 of total net sales for the 
amount sold per $1 of inventory 
increase as the amounts of inventory 
per $100 of total net sales increase. 
This condition holds for stores treated 



as a whole and when classified by size. 
Sixth, the amounts of inventory per 
$100 of total net sales for stores con- 
sidered irrespective of size decrease 
as the amounts of advertising per 
$100 of total net sales increase. When 
the stores are classified by size, the 
amounts of inventory per $100 of 
total net sales neither increase nor 
decrease regularly as the amounts of 
advertising expended per $100 of 
total net sales increase. Seventh, 
advertising expenditures per $100 of 
selling expense increase as stores in- 



343 



crease in size. Eighth, the amounts 
of advertising per $100 of selling 
expense, for stores considered irre- 
spective of size, remain essentially 
constant for one group — 149 — and 
decrease for another group — 282 — of 
stores, as inventories in relation to 
sales increase. When stores are clas- 
sified by size, the direction of change 
in the amounts is uncertain. The 
tendency for some of the groups is for 
tlie amounts to increase and for 
others to decrease as inventories in 
relation to sales increase. 

C. — Yearly Amounts of Expenditure 
for Advertising per $100 of Total 
Net Sales, for Stores Classified hy 
Bates of Stock Turnover and hy 
Size, 1919. 

For 1919 the records of 282 stores 
are available for a study of the 
amounts of advertising expenditures 
per $100 of total net sales for stores 
classified by rates of stock turnover 
and by size. In Table 247 the stores 
are classified by size and by rates of 
stock turnover. In Table 248 they 
are classified by the size of city in 
which they are located, and by rates 
of stock turnover, store-size being 
ignored. 

For the 282 stores, as shown in 
Table 247, the average expenditure 
for advertising per $100 of total net 
sales is $2.25. For the stores which 
turned their stock less than once, it 
is $1.72. From this amount as a 
minimum, the expenditures increase 
to $2.59 for stores which turned their 
stock four times and over. For the 
stores with a given rate of turnover, 



advertising expenditures per $100 of 
total net sales increase as the stores 
increase in size. That is, the amounts 
of advertising per $100 of total net 
sales vary directly with the size of 
the store, this condition obtaining not 
only for the group treated as a total, 
but also when it is classified by the 
rates at which stock is turned. In 
the detail in which the data are 
shown, there are too few instances in 
a number of places to secure a satis- 
factory average. The data, however, 
are shown in this form because it is 
thought desirable to give standard 
expenditures in this particular for 
stores classified according to the con- 
ditions which seem to determine the 
amounts. It is not contended, of 
course, that a causal connection is 
shown between the amounts of adver- 
tising expenditure and stock turn- 
over. The association between these 
facts, however, is so unmistakable as 
to suggest, if not a causal, at least 
a related connection. 

In Table 248, the same 282 stores 
are classified by location and by rates 
of stock turnover. For the stores 
arranged in this form, two methods 
of expressing the amounts of adver- 
tising are used : First, they are given 
in terms of sales; and, second, in 
terms of sales per stock turnover. 

For the 204 stores in the small 
cities, the average amount of expendi- 
ture per $100 of total net sales is 
$1.59. For the group of stores, when 
classified by the rates of stock turn- 
over, the amounts decrease generally 
as the stock turnover rates increase. 
For the 78 stores located in the large 



344 



TABLE 247 

TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAIi 
NET SALES, FOR STORES CLASSIFIED BY RATES OF STOCK TURN- 
OVER AND BY SIZE OF STORE, 1919 





Claaelfled 

Total 
Net sales 
(In OOO'b) 


Htonber 

of 
Stores 


Total 
Het. Sales 


Total 
Advertising 


Advertising per $100 of Total Net Sales 


Rates of 
Btook 


Aiaount 


Per Cent. 




Qraphlc Actual 
p 20 40 60 80 100 12.0 14i0 




Total 
(Average) 


282 


$35,563,014 


$799,944 


$2.25 


i 


100.0 







Total 
(Average) 


Under $40 
»40 to #80 
$80 to $180 

$180 ic over 


33 

106 
98 
45 


1,012,152 

6,020,400 

U, 667, 072 

16,863,390 


11,888 

82,543 

233,690 

471,823 


1.17 
1.37 
2.00 
2.80 

1.72 


52.0 

60.9 




'^^^"^^^^ I 


124.4 




I 




Total 
(Average ) 


9 


601,109 


10,346 


76.4 




^Hi^ 


TktdM- 1 


Under $40 
$40 to $80 
$80 to $180 

$180 (c over 


2 

4 
3 


64,787 
226, 698 
309,624 


719 
3,567 

6,oeo 


1.11 
1.57 
1.96 


49.3 
69.8 
87.1 








Total 
(Average) 


136 


11,010,775 


209,205 


1.90 


84.4 




1 


1 to 2 


Uhdar $40 
$40 to $80 
$eO to $180 

$180 & over 


19 

66 

45 

6 


570,712 
3,571,041 
5,487,136 
1,361,886 


7,328 

49,604 

122,893 

29,380 


1.28 
1.39 
2.24 
2.13 


56.9 
61.8 
99.6 
94.7 












Total 
(Average ) 


100 


15,987,018 


389,788 


2.44 


108.4 






2 t« S 


Under $40 
$40 to $80 
$80 to $180 

$180 k over 


12 
26 
40 
2S 


376, 653 
1,561,875 
4,663,355 
9,385,135 


3,841 

21,447 

89,307 

275,193 


1.02 
1.37 
1.92 
2.93 


45.3 

60.9 

85.3 

130.2 












Total 
(Average) 


23 


4,443,953 


99,583 


2.24 


99.6 






9 to 4 


Under $40 
$40 to $80 
$80 to $180 

$180 8c over 


8 
5 

10 


510,610 

617,557 

3,315,886 


6,701 

8,688 

84,194 


1.31 
1.41 
2.54 


58.2 

62.7 

112.9 




I 




Total 
(Average) 


14 


3,520,159 


91,022 


2.59 


115.1 




^^^^^^^ 


4 & over 


Under $40 
$40 to $80 
$80 to $180 
, $180 8c over 


2 

5 

7 


150,276 

889,400 

2,780,483 


1,224 

6,742 

83,056 


0.81 
1.14 


36.0 

50.7 

132.9 




i 



Average §2.25 



345 



cities, the average expenditure for 
advertising in relation to sales is 
$2.85. When this group is classified 
further by rates of stock turnover, 
the amounts increase as stock turn- 
over rates increase. 

When advertising expenditures in 
relation to sales are expressed on a 
per turn basis, the average amount 
for the 204 stores in the small cities 
is $0.84 and for the 78 stores in the 
large cities, $1.10. For both groups 
as located, the amounts, of course 
decrease as the rates of stock turnover 
increase. For the stores in the small 
cities which turned their stock less 



than once, the average amount is 
$2.11, and from this as a maximum, 
the expenditures decrease to $0.19 for 
those which turned their stock four 
times and over. For the stores in the 
large cities, if the single store which 
turned its stock less than once is 
excepted, the expenditures for adver- 
tising decrease from $1.75 for those 
that turned their stock one to two 
times, to $0.66 for those that turned 
their stock four times and over. 
There is an advantage in expressing 
the amounts of advertising in relation 
to sales per single turn, inasmuch as 
by this method the data are made 



TABLE 248 

AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES PER STOCK TURNOVER, FOR 
STORES CLASSIFIED BY SIZE OF CITY AND BY RATES OF STOCK TURNOVER, 1919 





RttH of 

Stock 
TUTOOver 


IhiBber 

of 
Btor«B 


UvertlHas per tlOO of Totol Sot Soles 


Advertising per »100 of Total Hot Bales 
per Stock Turnover 


Bit* 

or 

Clt7 
(U OOO'l) 


AoDUnt 


Per Cent. 


AnoTsit 


Per Cent. 


3 20 40 60 80 100 120 140 160 


5 20 49 6f 80 100 120 140 160 180 




tot»l 
(ATora^ ) 


282 


(2.2S 




100.0 


tl.02 
















ttodv 1 

1 to 2 

2 to S 

S to « 


S 
1S6 
100 
23 


1.72 
1.90 
2.44 
2.24 

2. SB 


76.4 
84.4 

ioe.4 

99.6 
lis. I 


2.29 
1.19 
0.9S 
0.66 
0.64 


224.6* 
US.7 


total 










1 












over ^ 


""^ 






Totnl 
(Averfcgo) 






70.7 


0.B4 














DtoSor 1 

1 to £ 

2 to S 

3 to 4 

4 k OTor 


e 

120 

iB 
10 

7 


1.S8 
1.76 
l.M 
1.22 
«r.B7 


70.2 
77.8 
W.4 
M.2 
58:. 7 


2.U 
1.09 
0.64 
0.36 
0.19 


206.9* 
106.9 
TBS.7 
3S.9 

18. « 


Dndnr 






— 




Tot»l 
(ATerkge) 


78 


2.85 


126.7 


1.10 














ttodar 1 

1 to 2 

2 to 3 
5 to « 

4 k oTor 


1 
16 
41 

13 

7 


?.»0 
2.f2 
2.64 
2.f.3 

5.:o 


128.8 
116.4 
126.2 
116.» 
146.7 


3.87 
1.76 
1.14 
0.77 
0.66 


' 


40 u^ 










^^^^ 


. 






^^^^^^ 
















64.7 



ATsrecs H.2i 



Avaraee tl.02 

ViU lenetb not 



346 



TABLE 249 

COST OF MERCHANDISE SOLD, AVERAGE INVENTORY, 1918 AND 1919, AND AVERAGE 

ANNUAL STOCK TURNOVER, FOR STORES CLASSIFIED BY SIZE OF CITY AND BY 

AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, 1919 



Slzo 

of 
city. 


Amoijnt of 

Advertising 

per $100 of 

Total 

Net Sales 


Number 

of 
Stores 


Cost of 

Merchandise 

Sold 


Average 

InventoiTr 

1913 & 1919 


Average Annual Stock Turnover 


Rato 

( 


Per Cent. 


(In OOO's) 


Graphic Actual 
) 20 40 60 80 100 120 




Total 
(Average ) 


282 


$23,853,253 


$10,940,487 


2.2 




100.0 








Ifader $1 
$1 to i2 
$2 to $3 
§3 & over 


79 

100 

66 

37 


4,186,022 
5,733,595 
7,445,518 
5,488,123 


2,041,793 
3,350,806 
3,280,090 
2,367,798 


2.1 
2.0 
2.3 
2.4 




.Total . 
(Average) 


: 


90.9 

104.5 
109.1 












^^^^^^^ 




Total 
(Average ) 


204 


11,492,072 


6,167,981 


1.9 


86.4 




1 




Under $1 
fl to §2 
$2 to *3 
tS & over 


72 
79 
39 
14 


3,598,129 

4,395,340 

2,717,964 

780,639 


1,806,214 

2,428,494 

1,469,938 

463, 335 


2.0 
1.8 
1.8 
1.7 


90.9 

ei.8 


Under 
40 


: 










77.3 








Total 
(Average) 


78 


12,361,186 


4,772,506 


2.6 


118.2 




1 

1 




Under $1 
$1 to $2 
$2 to §3 
|3 & over 


7 
21 
27 
23 


587,893 
2,338,255 
4,727,554 
4,707,484 


235,579 

922,312 

1,810,152 

1,804,465 


2.5 
2.5 
2.6 
2.6 


113.5 
113,6 
118.3 
113.2 


40 and 














: 



Averagd 2.2 



directly comparable. The contrasts 
which obtain between stores of dif- 
ferent location, but with uniform 
rates of stock turnover, are shown by 
amounts in Table 248, and it is un- 
necessary to review them in detail. 

In Table 249, the actual annual 
rates of stock turnover are shown for 
stores as classified in Table 248. This 
table is inserted primarily for the 
purpose of supplying the details used 
to calculate, in Table 248, the adver- 
tising expenditures per $100 of total 
net sales per turn. 



D. — Summary. 

(1). The amounts of advertising 
expenditure per $100 of total 
net sales generally decrease as 
the inventories per $100 of 
total net sales increase. This 
holds only when stores are 
classified without regard to 
size. For stores of a given 
size, the direction of change 
is uncertain. 

(2). The amounts of advertising 
expenditure per $100 of total 



347 



net sales for the amount sold 
per $1 of inventory increase 
as the size of the inventory in 
terms of sales increases. This 
is true for all stores and for 
stores of a given size. 

(3). For stores with a given 
amount of inventory per $100 
of total net sales, the amounts 
of advertising per $100 of 
total net sales decreased be- 
tween 1914 and 1918, and 
1918 and 1919. 

(4), For stores considered without 
regard to size, inventories in 
terms of sales decrease as the 
amounts of advertising per 
$100 of total net sales in- 
crease. For stores of a given 
size, they remain essentially 
constant as advertising ex- 
penditures increase. 

(5). The proportion of selling 
expense attributable to ad- 
vertising tends neither to in- 
crease nor to decrease as the 
inventories in terms of sales 
increase. 

(6). The amounts of advertising 
expenditure per $100 of total 
net sales per stock turnover 
increase as the inventories in 
terms of sales increase. 

(7). The amounts of advertising 
expenditure per $100 of 
selling expense per stock 
turnover increase as the in- 
ventories in terms of sales 
increase. 

(8). For stores Avith a given rate 
of stock turnover, advertising 



expenditures in terms of sales 
increase as the stores increase 
in size. 
(9). For stores with a given rate 
of stock turnover, the amounts 
of advertising, measured in 
terms of sales alone and of 
both sales and turnover, are 
higher in large than in small 
cities. 

3. — YEIARLY AMOUNTS OF EXPENDITURE 
FOR ADVERTISING IN RELATION TO 
THE AMOUNTS OF GOODS SOLD PER 
FULL-TIME SALES-PERSON. 

The present discussion, which has 
to do with the amounts expended for 
advertising, corresponds to the simi- 
lar sections relating to selling expense 
and to wages and salaries, with the 
exception that tables reflecting the 
amounts of expenditure under dif- 
ferent conditions of wage payment, 
are omitted. 

For the analysis of the amounts of 
expenditure for advertising in rela- 
tion to sales per full-time sales-person, 
the records of 146 stores in each of 
the years 1914, 1918, and 1919 are 
available for study. 

A. — Yearly Amounts of Expenditure 
for Advertising per $100 of Total 
Net Sales and per $100 of Selling 
Expense, 1919, 1918, and 1914. 
The stores are classified in Tables 
250 and 251, first, by years, and sec- 
ond, by the amounts sold per full- 
time sales-person. Two methods of 
expressing the advertising expendi- 
tures are used. The amounts are 
shown, first, for each $100 of total net 



348 



sales or selling expense, as the ease 
may be, and second, per $100 total 
net sales or selling expense per $1,000 
sold for each full-time sales-person.* 
For the combined years, represent- 
ing the experience of 438 store-years, 
the average expenditure for advertis- 
ing per $100 of total net sales is 
$2.28. For 1914 the amount was 



* The methods by which these units are 
computed are explained on page 4, items 
22 and 24. 



$2.57 ; for 1918, $2.22 ; and for 1919, 
$2.20. When the expenditures are 
expressed in a unit of sales for each 
$1,000 sold per full-time sales-person, 
the average amount for the com- 
bined years is $0.14. For 1914 it was 
$0.23; for 1918, $0.14; and for 1919, 
$0.11. It will be observed that the 
expenditures for advertising meas- 
ured in terms of sales alone decreased 
between 1914 and 1918, and 1918 and 
1919, respectively, by 14 and 1 per 



TABLE 250 

AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES PER $1,000 OF SALES PER 

FULL-TIME SALES-PERSON, FOR 146 IDENTICAL STORES CLASSIFIED BY AMOUNT 

OF SALES PER FULL-TIME SALES-PERSON, 1919, 1918, AND 1914 





jbKnmt ot 
Mrnla* per 
Fall-tlM 
Baloe-ponoo 
(In OOO'd 


■oBbor 

of 
Sto ra- 
ja ara 


Adrartlalng par tlOO of Total 
Bat Sals3 


Advertlalng par $100 of Total Hot Salee par 
tlfOOO of Salsa par Full-tlma Selas-poraon 


T*u« 


Aaouit 


Par Cant. 


Aaount 


Per Cant. 




Qraphio 
20 40 60 60 100 120 


Aetroal 


20 40 60 BO 100 130 140 150 180 200 




Total 
(ATorago) 


438 


tz.zs 




100.0 


to. 14 


' 


100.0 






', 




OUlar tl2 
tl2 to tie 
tie to tzi 

t«i to tSS 

tS2 ft erar 


151 

107 

iia 

39 
£9 


2.32 
2.12 
2.27 
2.51 
2.24 




lOl.a 
93.0 
99.6 

UO.l 
96.2 


0.2S 
0.15 
0.12 
0.09 

o.oe 


178.6 
107.1 




1 




(lTar>«>) 




■ 






• 
1 

1 






1 


42.9 




1 




TotU 
(ATorsga) 


146 


2.20 


96.5 


0.11 






1 






OaSar tl2 
tl2 to tie 
tie to t24 
$24 to tSS 
tSS ft OTOF 


IS 
30 
61 

ei 

19 


2.27 
1.56 
2.05 
2.69 
2.31 


99.6 

66.4 

69.9 
118.0 
101.3 


0.23 
0.11 
0.10 
0.10 
0.06 


164.3 
78.6 
71.4 
71.4 
42.9 


1«U 




1 












1 




»*tal 
(ATaraga) 


146 


2.22 


97.4 


0.14 


100.0 






t 




OMlaF tl2 

tu to tie 
tie to te4 

tZ4 to til 
|S2 ft OTOF 


SO 
42 
5T 
14 

S 


1.97 
2.10 
2.49 

1.90 
1.67 




86.4 
92.1 

109.2 
83.3 
73.2 


0.19 
0.16 
0.13 
0.07 
0.04 


135.7 
114.3 

92.9 
50.0 
28.6 


isia 


^^^ 


1 


1 






! 


■^■i^Bi 








Total 
(ATaraga) 


146 


2.57 


112.7 


0.23 


164.3 




1 






Oblar tl3 
tl2 to tie 
tie to tZ4 
t24 to tS2 
tS2 ft oTar 


86 
36 

20 

4 
1 


8.59 
2.62 
2.73 
2.30 

0.35 


110.5 
U4.9 
119.7 
100.9 
15.4 


0.28 
0.19 
0.15 


200.0 
135.7 
107.1 
57.1 
7.1 




, 


1 


















O.Ol 


■ : 



ATorage t2.28 



ATaraga' t0.14 



349 



cent. Between 1914 and 1918, and 
1918 and 1919, the amounts per $1,000 
sold per full-time sales-person de- 
creased by $0.09 and $0.03, or by 39 
and 21 per cent., respectively. This 
more rapid decrease in the amounts 
from year to year is directly attribut- 
able to the increase in the amounts 
sold per full-time sales-person. In 
1914, 1918, and 1919, respectively, 
these amounts were, on the average, 
$11,345, $15,613, and $20,437. 

When the stores are classified as in 
Table 250, there seems to be no defi- 
nite tendency in each of the different 
years for the amounts of advertising 
per $100 of total net sales to increase 
or to decrease as the amounts sold per 
full-time sales-person increase. "When 
the amounts are expressed in terms of 
sales per $1,000 sold for a full-time 
sales-person, however, they decrease 
in each of the years as the sales per 
full-time sales-person increase. By 
expressing the amounts in this form, 
they become directly comparable, in- 
a.smuch as both advertising and sales 
are reduced to a unit basis. The sizes 
of the decreases from year to year are 
found in the graphic and tabular 
parts of Table 250. 

In Table 251, the advertising ex- 
penditures are shown for stores classi- 
fied as in Table 250, The amounts, 
however, are given, first, as propor- 
tionate parts of selling expense, and 
second, as proportionate parts re- 
duced to a per $1,000 basis of sales 
per full-time sales-person. Brief con- 
sideration should be given to this 
table. 



For the combined years, advertis- 
ing expenditures constitute $21.18 of 
everv' $100 of selling expense, or, ex- 
pressed as a percentage, they repre- 
sent 21.18 per cent, of selling expense. 
In 1914, 1918, and 1919, the corre- 
sponding percentages were 22.64, 
20.28, and 21.15. That is, they de- 
creased between 1914 and 1918, and 
increased between 1918 and 1919. 
When the expenditures are further 
expressed in terms of $1,000 sold per 
full-time sales-person, the average 
amount for the three years is $1.31. 
In 1914 it was $2.00; in 1918, $1.30; 
and in 1919, $1.03. That is, between 
1914 and 1918, and 1918 and 1919, 
the amounts decreased. 

When the stores in each of the 
years are classified as in Table 251 
by the amounts sold per full-time 
sales-person, the advertising expendi- 
tures, as proportionate parts of sell- 
ing expense, neither increase nor 
decrease regularly as the sales per 
full-time sales-person increase. The 
general tendency, however, is for 
them to increase. When they are 
computed for each $1,000 sold per 
full-time sales-person, they decrease 
as sales per full-time sales-person 
increase. By the use of this more 
refined unit, the stores from year to 
year and from group to group are 
more readily compared because the 
expenditures for advertising and the 
sales are reduced to a unit basis. The 
nature of the amounts wdth the in- 
creases from year to year and from 
group to group are shown in tabular 
and graphic form in Table 251. 



350 



B. — Yearly Amouiits of Expenditure 
for Advertising per $100 of 
Total Net Sales and per $100 of 
Selling Expense, for Stores Clas- 
sified by Size, 1919, 1918, and 
1914. 

For the discussion of the amounts 
of advertising expenditures for stores 
of different size and with different 
amounts of sales per full-time sales- 
person, the records of 146 stores are 
available for study from year to year, 



while for 1919 alone the records of 
269 stores may be used. Attention is 
given, first, to the larger group of 
stores, and second, to the stores which 
are identical from year to year. 

Based upon the records of 269 
stores for 1919, as shown in Table 
252, the average amount of advertis- 
ing expenditure per $100 of total net 
sales was $2.25. As the stores in- 
crease in size, the expenditures in- 
crease, the minimum being $1.13, for 



TABLE 251 

AMOUNT OF ADVERTISING PER $100 OF SELLING EXPENSE PER $1,000 OF SALES PER 

PULL-TIME SALES-PERSON, FOR 146 IDENTICAL STORES, CLASSIFIED BY AMOUNT 

OP SALES PER FULL-TIME SALES-PERSON, 1919, 1918, AND 1914 





ABomit of 
Salsa par 
Pull-tljiia 
Bales-person 
(in OOO'a) 


BuBbor 

Of 

fitora- 
Taara 


MT«Ftlalii« per $100 of Sailing Bipania 


Advartlalng par $100 of Sailing Sxpansa par 
$1,000 ofSales par ?nll-tljM>Salao-pareon 


•x»m 


AaouDt 


Par Cant. 


Aarant 

< 


Par Cent. 


*"^° 1 Actual 
) 2p 4p 60 8p 100 120 140 


*^"« 1 Aotnal 
) 20 40 60 80 100 12,0 140 160 180 200 




Total 
(ATarse*) 


438 


$21.}B 




100 .0 


$1.81 




100.0 










Dnlar tl2 
tl2 ta (la 
|16 to |24 
i2i to %iZ 
»J2 ii OTsr 


ISl 

107 
\13 
33 
23 


20.76 
19.35 
20.22 
24.96 

26.es 


98.0 
91.4 
95.6 
117 .8 
126.9 


2.21 
1.41 
1.06 
0.91 
0.72 


168.7 
107.8 








(iTaragt) 










,p^^^ 


69.S 
SS.O 












Total 
(A»«r«ro ) 


146 


21.1S 


99.9 


1.03 




78.6 








Undar tl2 
%12 to $16 
tl6 to t24 
t24 to %iZ 
$32 h OTsr 


15 
30 

61 

ei 

19 


24.61 

IS. 3* 
18.11 
26.91 
26.82 


116.2 
72.5 
SS.S 

127.1 

I2s.e 


2.59 
l.U 
CSS 

o.ge 

0.72 


193.1 
84.0 
73. S 
74.8 
SS.O 


1S19 






— 
















Total 
(AToraf^a ) 


146 


20. 2S 


95.8 


1.30 


99.2 










Oddar tl2 
$12 to $16 
$16 to $24 
$24 to $3S 
$SZ k OTar 


SO 
42 
37 
14 
9 


19.22 
ia.S7 
21.91 
18.83 
29.30 


90.7 

ea.l 

103.4 
88.9 
141.2 


1.89 
1.S9 
1.10 
0.6B 
0.80 


144.9 

106.1 
S4.0 
82.7 

61.1 


















"■■^ 








(Araraga) 


146 


22.64 


106.9 


2.00 


152 .7 










Oidar $12 
$12 t» $16 
$16 to $24 
$24 to $32 

$32 i OT»r 


86 
SS 

20 
4 
1 


2Cr.99 
23.38 
27.88 
20.17 
12. 4« 




99.1 
110.4 
131.B 

9e'.2 
e».e 


2.34 

1.67 
1.49 
0.73 
0.33 




178.6 
127 .S 
11S.7 
SS.7 
28 .2 


1814 


, 




'^^ '" !* 


■^^^ 






— 







Anrags tnua 



Avara^ tX«9X 



351 



the stores with sales under $40,000, 
and the maximum $2.81 for those 
with sales of $180,000 and over. 
When the amounts are expressed per 
$100 of total net sales per stock turn- 
over, the average for the entire group 
is $1.02. As the stores increase in 
size, the expenditures for advertising 
in terms of both sales and stock turn- 
over increase from a minimum of 
$0.75, for the group of stores with 
sales under $40,000, to $1.06 for 
those with sales of $80,000 to $180,- 
000. 

When the stores are further classi- 
fied by the amounts sold per full- 
time sales-person, the expenditures 
for advertising, expressed in terms of 
sales, do not show a tendency to in- 
crease or to decrease regularly as the 
amounts sold per full-time sales- 
person increase. In some of the 
store-groups the number of instances 
are too few to serve as a basis for 
generalization. The averages, how- 
ever, are inserted as representing the 
standards determined for the stores 
as classified. 

When the expenditures are shown 
for each $100 of total net sales per 
stock turnover, the amounts for each 
store-group generally decrease as the 
amounts sold per full-time sales- 
person increase. To this general rule, 
however, there are numerous excep- 
tions, although, as a general principle, 
the turnover rates, which accompany 
large sales per full-time sales-person, 
are of sufficient size in most instances 
to reduce the expenditures expressed 
in this form. The actual amounts, 
together with the increases or de- 



creases, are shown in tabular and 
graphic form in Table 252. 

For the 269 stores, advertising 
expenditures per $100 of total net 
sales, reduced to a basis of $1,000 
sold per full-time sales-person, are 
shown in Table 253. Expressed in 
this manner, the average amount for 
the entire group is $0.11. For the 
stores that had sales of less than 
$40,000, the average is $0.07, and 
from this as a minimum the amounts 
increase to $0.12 as a maximum for 
the stores with sales of $180,000 and 
over. For the stores considered as a 
whole, and when classified by size, the 
expenditures decrease as the amounts 
sold per full-time sales-person in- 
crease. It is unnecessary to name 
these amounts inasmuch as they are 
contained in the table, the graphic 
summary of which makes a compari- 
son of them easy. 

In Table 254 a somewhat different 
form of analj^sis is presented. The 
table shows the amounts of sales (in 
dollars) secured per $100 of adver- 
tising expenditure.* For the 269 
stores, the average is $4,435. For 
those with sales under $40,000, it is 
$8,880, and from this as a maximum 
the amounts decrease to $3,557 for 
stores with sales of $180,000 and over. 
That is, the sales secured for each 
$100 expended for advertising de- 
crease as the stores increase in size. 
When the stores are classified by size 
and by the amounts sold per full- 
time sales-person, the sales secured 
for each $100 of advertising tend, on 

* The method by which this unit is com- 
puted is explained on page 4, item 11. 



352 



TABLE 252 

AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES PER STOCK TURNOVER, FOR 

STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SALES PER 

FULL-TIME SALES-PERSON, 1919 





Aaeunt of 
S>lM t»r 

?\lll-tlBO 

E«lea-parBon 
(In OOO'i) 


Hmbor 

of 
StoroB 


Adnrtlolng por (100 of Total Kot Salts 


AdTortlalng par (100 of Total Vat S«lea 
por Stock Turnover 


T«t«l 
*st Smln 
(In OOO'i) 


iaount 


far Cant. 


ABount 


Par Cent. 


Orapblo | Actual 
2p 4p 60 SO 100 120 Hfl 160 


Orapblc 
20 40 60 80 100 120 140 160 ISO 


1 Actual 




Tottl 
(iLTor«s> ) 


269 


(2.2S 




100.0 


(1.02 




100.0 




Undor 112 
tl2 to tie 
|1£ to t2« 
tX* to tS2 

t:e k aiar 


90 
SB 

109 
44 

96 


2.10 
1.69 
2.17 

e.3e 

2.S9 




99.9 
76.1 
96.4 
104.4 

129.4 


1.24 

0.80 
1.09 
0.98 
1.09 






totU 
(Avarage) 






78.4 




















^- i 








Totil 
(AverA£8 ) 


31 


1.13 


so.e 


0.75 


75.6 




Cbjor (12 
(12 to (16 
(16 to (24 

(24 to (32 
(S2 t OTcr 


» 
4 
7 
7 
4 


1.32 

o.ei 

0.62 
0.79 
2.02 


66.7 
40.4 
96.4 
93.9 

69.8 


0.94 
0.51 
0.63 
0.44 
1.26 






ttader $40 


^^ 


60.0 
61. S 
43.1 

125. S 




— 






TotiJ 
(ATer«s« ) 


109 


1.37 


60.9 


0.76 




74.S 




Onaor (12 
(12 to (le 
(16 t«*(24 
(24 te (32 
(»2 i over 


16 
34 

91 

9 
19 


1.42 
1.67 
1.12 
1.27 
1.10 


63.1 
74.2 
49.6 
96.4 

S2.4 


0.95 
0.96 
0.62 
0.60 
0.62 




93.1 
96.1 

60.8 
58.8 
60.8 


|40 to ^ 




i 




Tot»l 
(Aver«^e ) 


92 


2.01 


69.3 


1.06 














Undor (12 
(12 to (IS 
(16 to (24 
(24 to (32 
(32 « ever 


4 
U 
50 
14 

9 


3. 55 

1. 01 
1.94 
1.97 
2.15 


148.9 
64.9 
66.2 
67.6 
94.7 


1.76 
0.96 
1.08 
0.94 
0.76 


172.& 
94.1 

10S.9 
92.2 


»eo to liso 






























Tottl 
!A,.roKO) 


43 


2.81 


124.9 


1.04 














Dndor (12 
(12 to (16 
(16 to (24 
(24 to (32 
(32 & 07er 


1 
3 
1£ 
14 
10 


2.61 
1.52 
2.81 

z.ee 

3.49 


124.9 
67.6 
124.9 
lit. 2 
155.1 


1.12 


109.6 










1.08 


— ' — ^ • 


10S.9 
100.0 
106.9 




^^^^ 






^"T"" 


1.09 






• 





.iTCfA^ %2,a 



ATera^ 1 1.03 



the whole, to increase as the amounts 
sold per full-time sales-person in- 
crease. This is not true for the stores 
treated irrespective of size, nor for 
all of the groups as classified in this 
form. Generally speaking, however, 
there is a direct relation between the 



sales secured per $100 of advertising 
and the amount of goods sold per 
full-time sales-person. The actual 
amounts and the changes from group 
to group are shown in Table 254. 

The foregoing discussion relates to 
the records of 269 stores for the year 



353 



TABLE 253 

AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES PER $1,000 OF SALES PER 

FULL-TIME S.VLES-PERSON, FOR STORES CLASSIFIED BY SIZE AND BY 

AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 



Tot.l 


*»onat or 
&»!•■ psr 

PoU-tlM 

6«l«i-p«.~a<n 
(In ^Oo'») 




AilTartlilng par $100 or Total lat Salaa 


AdvsrtlAlAs F«r $100 or Total Vat Salaa par 
$1,000 or Salaa par Pnll-tl« Salaa-peraoB 


»i=ibar 

or 
Storas 




Par Cant. 


iaonnt 


Par Cant. 


(In ooo •) 


Amotmt 


*-"^« 1 Aotual 
3 2p 40 60 80 100 120 


5 2p 40 60 80 100 12,0 140 160 190 2(J0 




Totml 
(AT«r«s«) 


2sa 


$2.23 




100.0 


io.ix 




100.0 










Dtidar tl2 
112 t« lis 
lie to »24 
t24 to t32 
$32 k eT«r 


so 

58 
lOS 
44 
36 


e.ie 

1.69 
2.17 
2.35 
2.89 


93.3 
73.1 
96,4 
104.4 
128.4 


O.tl 

0.12 
O.U 
0.09 
0.07 


i9o.a 

109.1 
100.0 
81.3 
63.9 


ToUl 






■ 












1 

1 

1 








Total 
(Averaga) 


31 


1.13 


50.2 


0.07 


63. S 




PoUr tia 
|12 to tie 
1l6 to $24 
t24 to i:2 

tS2 4 o»ar 


9 

« 
7 
7 
t 


1.38 
0.91 
0.32 
0.7S 
2.02 


58.7 
40.4 

3e.4 

33.3 

89.8 


0.13 
0.0« 
0.04 
0.03 
0.06 


ua.e 

S4.S 
36.« 

er.s 

64.5 


QDder i-M 


■■■■■ 








Total 
(ATorag«) 


103 


1.37 


60.9 


o.oe 


72.7 




Oivlar tl2 
tl2 to tie 
$16 to $24 
$24 to $:2 
$32 i o,« 


IS 
34 

31 
» 
13 


1.42 
1.87 

1.12 
1.27 
I.IS 


63.1 
74.2 
49.8 
56.4 

52.4 


0.14 
0.12 
0.06 
0.05 
0.03 


127.3 
109.1 
64.9 






t40 t« tea 


1 




"21™ 


4S.S 
27.3 




Total 
(Avorage) 


«2 


2.01 


89.3 


O.IO 


90.9 










On<:ar $12 
$12 to $ie 
$16 to $24 
$24 to $32 
$32 » OTor 


4 
16 
SO 
14 

• 


S.3S 

1.91 
1.94 

1.97 
2.U 


148.9* 
84.9 
86.2 
87.6 
94.7 


0.32 
0.14 
0.10 
0.07 
0.06 


290.9* 
127.3 
90.9 








leo to tiso 




^"^^" 






1 

1 
















Total 
(Averaga) 


43 


t.ai 


124.9 


0.12 








• 






Ou!er $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 & OTor 


1 
3 
15 
14 
10 


2.81 
1.52 

2.81 
2.66 
3.49 


124.9 
67. B 
124.9 
118.2 

1S5.1* 


0.27 
O.U 
0.15 
0.10 
0.08 


245.6» 

100.0 
136.4 






• 


llSO k OTsr 






! 






I 




72.7 




' 





4T«rag« $2,26 



Average $0.U 



Pull length not ehoan 



1919. Because of the fact that 1919, 
in many respects, was an exceptional 
year, it has been thought of interest 
to classify a somewhat smaller group 
of identical stores by size and by the 



amounts sold per full-time sales- 
person for the combined and the indi- 
vidual years 1919, 1918, and 1914. 
This is done in Tables 255 to 258, 
inclusive. 



354 



TABLE 254 

TOTAL ADVERTISING, TOTAL NET SALES, AND AMOUNT OP TOTAL NET SALES PER $100 

OF ADVERTISING, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF SALES PER FULL-TIME SALES-PERSON, 1919 





Antounb of 
B»loa pap 
Pull-tlme 
Sales-persoQ 
(In 000' a) 


Number 

of 
Store 


Total 
Advertising 


Total 

Net Salae 


Total Mat Salsa per (lOO of Advertlalng 


totrnt 
H*t «alea 


Amount 


Per Cent. 


(In OOO'b) 


Graphic Actual 
5 20 40 60 60 100 120 140 160 180 200 220 240 




Total 
(Average ) 


269 


(759,571 


(33.687,842 


(4,4J5 




100.0 








Ooder |1£ 
|12 to |16 
(16 to |24 
(24 to (32 
(32 9c over- 


SO 
66 
103 
44 
96 


39.336 
83,336 
296.746 
1S1.37S 
156,780 


1,875.394 
4.923.136 
13.737,725 
7,722.827 
8,428.760 


4.768 
5.908 
4.598 
4.2S8 
3,463 


107.8 
133.2 

103.7 
96.0 
78.1 






(Average ) 


















Total 
(Average ) 


91 


10,847 


963.213 


8.880 

7,579 
10,966 
12,168 
13.288 

4,951 


200.2 








onder (12 
(12 to (16 
(16 to (24 
(24 to (32 
(32 & over 


a 

4 
7 
T 
« 


3,288 
1,167 
1.898 
1,897 
S,009 


249,200 
127,962 
230.167 
212.169 
143.731 


170.9 
247.2 
274.3* 
299.6* 
111.6 


•Oador 1*0 




















Total 
(Average ) 


103 


60.647 


8,872,443 


7,291 


164.4 








titider (12 
(12 to (16 
(16 to (24 
(24 to (92 
(32 i over 


16 
94 
31 
9 

19 


12,113 
32,841 
SO. 139 
7,S6S 
7,693 


630,429 

1,861,398 

1,800,658 

693,340 

666,624 


7,018 
8,972 
6,844 
7,846 
6,446 


158.2 
134.7 
201.7 
176.8 

190.4 


•lo to teo 
















' 




Total 
(Average ) 


9S 


ei7,97» 


10,840.787 


4,873 


112.1 






leo tolieo 


Holer (IS 
(12 to lie 

|16 to |S4 

|24 to |3B 
ISS k ovwr 


4 
U 

to 
u 

9 


13,130 
80,e2» 
Ue.969 
99,948 
23,812 


881,470 
l.eO«,B73 
6,887,847 
1, 722,931 
1,129,176 


S,881 
8,228 
6,184 

8,079 
4,700 


67.2 

iie.i 

116.2 
U4.4 

106.1 














1 
t 




Tetal 
(Averaige) 


49 


460,196 


16,011.969 


9,667 


60.2 




Onder llS 
lis to lie 
lie to |84 

|S4 to las 

. |ae k over 


1 
S 

u 

14 
10 


10,800 
IBjTOS 
160,966 
138,266 
122,072 


884,298 
1.8*9,606 
8, 709,960 
6,184,993 
9,493,228 


6,674 
3,860 
«,79» 

t.ees 




tUOk over 




148.8 
60.3 








64.8 



Average (4,435 



full leastb not ihoaa 



355 



In Table 255 the records of the 146 
stores for the three years are com- 
bined. The average expenditure for 
advertising per $100 of total net sales 
for these stores is $2.28. The smallest 
expenditure — $1.67 — is for stores with 
sales of $40,000 to $80,000. From 
this amount as a minimum there is an 
increase to $2.73 for stores with sales 
of $180,000 and over. That is, gener- 
ally speaking, the amounts expended 
for advertising per $100 of total net 
sales increase with the size of stores. 
Table 255 shows also the amounts 
expended for advertising per $100 of 
total net sales for the stores further 
cla.ssified by the amounts sold per 
full-time sales-person. By consulting 
the table it will be observed that, for 
stores of a given size-group, the ad- 
vertising expenditures per $100 of 
total net sales, on the whole, tend 
generally to decrease as the sales per 
full-time sales-person increase. To 
this general rule the group with sales 
under $40,000 constitutes a notable 
exception. 

When the expenditures for adver- 
tising are expressed per $100 of total 
net sales for each $1,000 sold per full- 
time sales-person, as in the right-hand 
columns of the table, the average 
amount for the entire group is $0.14. 
The largest amount applies to stores 
which had sales under $40,000 per 
year. For the remaining groups of 
stores, the expenditures are approxi- 
mately equal. AVithin each group of 
stores, however, the amounts decrease 
as the sales per full-time sales-person 
increase. For the entire group, ir- 
respective of size, the advertising 



expenditure expressed in this form 
was $0.25 for those stores in which 
the sales per full-time sales-person 
were less than $12,000, and $0.06 for 
those in which the sales per full-time 
sales-person were $32,000 and over. 
Similar decreases hold for each of the 
different groups. By expressing the 
amounts in this form, both advertis- 
ing expenditures and sales are re- 
duced to a unit basis and are directly 
comparable. 

In Tables 256 to 258, advertising 
expenditures are shown per $100 of 
total net sales and per $100 of total 
net sales for each $1,000 sold per full- 
time sales-person for the 146 stores 
for the years 1919, 1918, and 1914, 
respectively. It is unnecessary to 
review in detail the contents of these 
tables. It will suffice to point out 
that, while the actual amounts differ 
from store-group to store-group and 
from year to year, the direction of 
change in the amounts was substan- 
tially the same in each of the years 
as in the combined years. 

The amounts of advertising expen- 
diture for the two groups of stores 
considered immediately above may 
also be expressed in terms of selling 
expense. This is done for the 269 
stores in Tables 259 and 260, the units 
of measurement in Table 259 being 
per $100 of selling expense and per 
$100 of selling expense per stock 
turnover, and in Table 260, being per 
$100 of selling expense and per $100 
of selling expense for each $1,000 sold 
per full-time sales-person. 

In 1919 for 269 stores, the expen- 
ditures for advertising for each $100 



356 



TABLE 255 

AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES PER $1,000 OF SALES PER 

FULL-TIME SALES-PERSON, FOR 146 IDENTICAL STORES CLASSIFIED BY 

SIZE AND BY AMOUNT OF SALES PER FULL-TIME S^VLES- 

PERSON, 1919, 1918 AND 1914, COMBINED 



Cluiiriad 


Aaowit of 
Salaa per 

Pull-tlDO 

Saloa-person 
(In OOO'a) 


NuDbar 

of 
Store- 
yaara 


Advertlalng per (100 of Total Ket Salaa 


AdvartlBlng per (100 of Total Hat Salaa par 
(1,000 of Salaa per I>all-tlj!ie Salee-peraon 


lat Balsa 

(In OOO'a) 


Amount 


far Cant. 


Aaoont 


Per Cent. 


) 20 40 60 eo 100 120 140 


Ortphlc 1 4^„j^ 
J 20 40 60 80 100 120 140 160 160 




Total 
(Averaga ) 


4se 


(2.28 




100.0 


(0.14 


1 














Dndar tl2 
•12 to |16 
(le to t2« 
t24 to tZS 
tS2 k OTer 


1£1 
107 

lie 
s» 

25 


2.52 
2.12 
2.27 
2.51 
2.2« 


101.8 
85.0 

68.6 
110.1 

se.2 


0.25 
0.15 
0.12 
0.09 
0.06 


1 

178.6 
107. 1 
85.7 


total 






(ATaraaa) 



























Total 
(Ayerage ) 


125 


1.70 


74.6 0.16 


U4.3 








Usdar tl2 
%12 to (le 
(IE to (24 
(24 to (22 
(52 » OTer 


71 
25 

17 
10 

4 


l.ee 

1.54 

1.24 
1.78 
2.22 


82.5 

58. e 

54.4 

76.1 
97.4 


0.24 
0.10 

0.07 
0.06 
0.06 


171.4 
71.4 
50.0 


DuSar i*0 


-iii— 


::^ 
















Total 
(iTorago) 


165 


1.67 


75.2 


0.12 


85.7 








Oalar (12 
(12 to (16 
(le to (24 
(24 to (i2 
(92 k omr 


65 

«B 

se 

7 
7 


i.a2 

1.71 
1.42 

1.51 
O.Bl 


84.2 
75.0 
62.5 
66.2 
55.5 


0.19 
0.12 

o.oe 
o.oe 

0.02 


155.7 
85.7 
67.1 
42.9 

14.5 


$40 to tao 


— 








Ibtal 

(Avaraxa ) 


108 


2.28 


100.0 


0.14 


100.0 










DBdar (12 

(12 to (18 
(16 to (24 
(24 to (S2 
(J2 k o»or 


14 

51 
46 
12 
S 


S.U 
2.16 
2.21 
2.02 
2.06 


156.4 

S4.7 
96.9 
68.6 
90.4 


0.51 
0.16 
0.12 

O.oe 

0.06 


221.4* 
114.3 

es.7 

57.1 
42.9 


teo to tuo 














HZ" 












Total 
(Avaraga ) 


42 


2.75 


U9.7 


0.15 


92.9 










Ondar (12 
(12 to (16 
(16 to (24 
(24 to (52 
(S2 k OTor 


5 
6 
17 
10 

7 


5.72 
2.86 
2.60 
£.84 
2.51 




165.2* 
125.4 
U.4.0 
124.6 
110.1 


0.56 
0.21 
0.15 
0.10 
0.07 


257.1* 
150,0 
a2.a 
71.4- 

5o'.a 


tiso k oTor 














_ 




, 




. 



Anr*et (2.2S 



ATcrags (0.14 

Pull lon^tb not eiiOvL 



357 



TABLE 256 



AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES PER $1,000 OF SALES PER 

FUXIj-TiaiE SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND BY 

AMOUNT OP SALES PER FULL-TIME SALES-PERSON, 1919 





Anotmt of 
Salea p«r 

Pull-tlaio 

Balaa-peraon 

(In OOO'a) 


Umber 

or 

Stores 


AdTortlalng par (100 of Total Hat Salsa 


AdTortlalng per (100 of Total Hot Sales per 
(1,000 of Salea per Pull-tljao Sales-person 


Claaairiad 

To-.«l 
I>t S«:a> 

(IB OOO'i) 


Ajacrunt 


for Cant. 


Aaoont 


for Cant. 


Oraphia | Actual 
20 40 60 80 100 120 140 160 


Qraphlo 
20 40 60 80 100 120 1< 


Actual 





Total 
(ATemge) 


146 


(2.20 


1 


100.0 


(O.U 




100.0 










ttador (12 
(12 to (IS 
(16 to (24 
(24 to (32 
(32 k over 


IS 
50 
61 
21 
19 


2.27 
1.58 
2.05 
2.69 
2.31 


103.2 
70.9 
S3.2 
122.3 
105.0 


0.23 
O.U 
0.10 
0.10 
0.06 


209.1** 
100.0 

eo.s 

90.9 
64.5 








(ATftr&g«) 














— 




' 




Total 
(Avorane) 


14 


i.4e 


66.4 


0.09 


81.8 




' 




Dador (12 
(12 to (le 
(16 to (24 
(24 to (32 
(32 S 0T« 


6 
1 
4 
2 

2 


1.3S 
1.24 
0.71 
0.96 
3.43 


61.8 
56.4 
Z2.3 
43.S 

157. 3 


0.14 

0.09 
0.04 
0.04 
0.10 


127. S 

si.ar 

S6.4 

36.4 

90.9 


OaiaT (40 




zz 




■■■■■■ 






TotU 
(Arerago) 


64 


1.28 


68.2 


0.06 


72.7 




ttadar (12 
(12 to (16 
(16 to (24 
(21 to (32 

(32 4 over 


8 

la 

18 
4 
'« 


1.33 

1.67 
1.08 
1.40 
0.S8 


60 .5 
71.4 
49.1 
6S.S 
40.0 


0.14 
0.11 
0.06 
0.05 

o.oa 


127.3 
100.0 
54.5 
45 .S 

ia.8 


tU t« (80 








Totol 
(Average) 


M 


1.97 


e«'.5 


0.11 


100.0 




1 






Onder (12 
(12 to (16 
(16 to (24 
(24 to (32 
(32 k over 


t 
U 

SO 

7 
4 


S.02 
1.5S 
r.86 
1.91 
2.07 


828.2* 
70.5 
89.1 

ee.8 

94.1 


0.50 
0.11 
O.U 
0.07 
0.06 


454.5* 
100.0 
100.0 
63.S 
64.5 


(80 to (ISO 
























Total 
(Averbga) 


24 


2.65 


120 .S 


O.U 


100.0 




' 


i 
1 


tl80 ft OTor 


Dnder (12 
(12 to (IS 
(16 to (24 
(24 to (32 
(32 h OTsr 


9 
8 

7 


2.4S 

'2.99 
2.51 


IIO.S 
135.9 
114.1 


0.13 
O.U 
0.07 


• 

118.2 
100.0 
«S.6 






' 













Aier^ea (2.20 



Avorags (O.U 



PuU length not f&oan 



of selling expense constituted $22.13. 
In otiicr words, advertising consti- 
tuted 22.13 per cent, of selling ex- 
pense. When the stores are further 
classified by size, the expenditures 



for advertising per $100 of selling 
expense range from $18.28, for the 
stores with sales of $40,000 to $80,000, 
to $24.37 for stores with sales of 
$180,000 and over. That is, generally 



358 



speaking, the amounts increase as the 
stores increase in size, or, in other 
words, advertising expenditures for 
stores of increasing size increase more 
rapidly than do the total selling ex- 
penses. When the advertising expen- 
ditures per $100 of selling expense 



are reduced to a per stock turnover 
basis, the average for the entire 
group is $10.06. For those stores 
with sales under $40,000 it is $12.77. 
From this as a maximum, the amounts 
decrease to $9.03 for the stores which 
had sales during this year of $180,000 



TABLE 257 

AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES PER $1,000 OF SALES PER 

FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND BY 

AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1918 



CtaaBiriad 


AmoTjilt of 
Sales per 
Pull-tlmo 
Saies-peraon 
(In OOO'a) 


number 

of 
Storee 


Advertlalng per $100 of Total net Saloa 


MvertlBlne per $100 of Total Hot Ealea per 
$1,000 of Sales per Pull-time Saloe-peraon 


Rat Salss 


Aaonmt 


Per Cent. 


Aiunmt 


Per Cent. 




Oraphlc 1 Actual 
3 20 40 60 80 100 120 140 


Orophle 1 Actual 

3 20 40 60 80 100 120 140 160 180 




Total 
(Average) 


146 


$2.22 




100.0 


$0.14 


1 


100. 










Under $12 
112 to »16 
tie to t24 
t2i to $32 
(32 t over 


50 
42 
37 
14 
3 


1.B7 
2.10 
2.49 
1.90 
1.67 




88.7 
94.6 
112.2 
65.6 
75.2 


0.19 

0.16 
0.13 
0.07 
0.04 


135.7 
114.3 
92. » 
50.0 
28.6 








(Average ) 










^^^ * 








Total 
(Average) 


40 


1.52 




68.5 


O.IS 














Dnder tl2 
$12 to $16 
$16 to $24 
$24 to $32 
$32 4 over 


21 

7 
5 
S 
2 


1.56 
1.38 
1.06 
2.28 

cr.se 




70.S 

62.2 
47.7 
102.7 
4Cr.l 


0.18 

0.10 
0.06 
0.08 
0.02 




Alder Uo 


... 


ll. 


71.4 

42.8 
57.1 
14.3 




— 




Total 
(Average) 


61 


1.63 


73.4 


0.12 














Dnaer $12 
$12 to $16 
$16 to $2i 
$24 to $32 
$32 i over 


24 

20 
15 
2 


1.92 
1.62 
1.30 
0.61 


86.S 
7S.0 
58.6 
27.5 


CIS 
0.12 
0.07 
0.02 


128.S 
85.7 
SO.O 
14.3 


ito to teo 


- 








Total 
(Average) 


it 


2.SS 


107.7 


0.14 


100.0 










Dnder $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 k over 


5 
11 
10 

5 

1 


2.66 

2.25 
2.58 
2.16 
2.03 


11S.4 ' 

101.4 

116.2 

9T.3 

91.4 


0.24 
0.16 
0.13 

o.oe 

0.06 


171.4 
U4.S 

S2.» 
57.1 
42.9 


%ao to tiao 


























Total 
(Average) 


13 


2.63 


118.5 


0.15 


107.1 








tieo t OTor 


Obder $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 k over 


4 
7 
2 


2. SI 
2.80 
1.73 


llS.l 
126.1 
77.9 


0.20 
0.14 

O.oe 


142.9 
100.0 
«S.9 













Average $2.22 



359 



TABLE 258 

AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES PER $1,000 OF SALES PER 

FULL-TIME S.VLES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND BY 

AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1914 





AaouBt of 
Siaoi por 

Pull-tUM 

S«loi-p«r«ofi 

(in 0O0'«) 


Sn>b«7 

or 


AdTortlaiAg par tlOO of Total lat Salsa 


AdvartlBlng par tlOO of Total lat Salea par 
tlfOOO of Salea par Pcll-tljna Salas-paraon 


Clutiriod 

Total 
«*t tmlf 

(la ooo'>) 




Far Cant. 


ABOunt 


Far Cant. 


Storaa Aoount 


OrapMo Actoal 
20 40 eO 80 100 120 140 160 


Crapble 1 Aatual 
3 20 40 60 80 100 120 140 160 




Total 
Unngo ) 


14« te.ST 




100.0 


tO.23 




100.0 










1 


96.1 

101.9 
106.2 
89.5 
13. e 


0.28 
0.19 
0.15 

O.oe 

0.01 


121.T 
82.6 

es.a 

34.8 
4.3 




tu to tie 
tie to tM 
t24 to taz 

tS2 h oTor 


S5 

20 

« 
1 


2.e2 

2.V, 
2.30 
0.3S 




— 


Unr><o ) 










■ 




Total 
(ATora^a) 


71 


l.SB 


72.4 


0.21 


91.3 








IJiidar tl2 
tl2 to tie 
tie to tz4 

t24 to t32 
tsekorar 


«5 
IS 

e 

3 


2.10 
1.32 

1.7a 

1.48 


81.7 
51.4 
69.3 
57. e 


0.29 
O.IO 
0.10 

o.oe 


126.1 
43.3 
43.9 

se.i 


Oulu- tto 


; 


^ 




Total 
(iToraga) 


48 


2.18 


S4.8 




82.8 






0.19 






UBdar tl2 
tl2 to tie 
tie to tz* 
t24 to t32 
t5£ k o»ar 


31 

10 
5 

1 
1 


2.oe 

2.11 

3.09 
3.47 
O.JS 


80.2 
82.1 
120.2 
13S.0 

u.e 




91.3 
6S.S 
78.3 
St. 2 
4.3 






0.15 
O.lfl 
0.13 
0.01 


» [ 


(40 to tec 










- 




Total 
(Avoraga) 


22 


2. Be 


1U.3 




95.7 




1 


0.22 






Ctader tl2 
tl2 to tie 
tie to t2« 
t24 to tS2 
t52 » o«r 


7 

e 

6 


2.9« 
2.82 
2.79 


115 rf 
109.7 
108. e 




i34.a 

9L.3 
S0.9 


tao to tiso 




0.31 






0.14 










Total 
(AToraga) 


s 


3.S2 


137.0 


0.27 


117.4 










Dodar tl2 
tl2 to tie 
tie to t2* 

t24 to tSZ 
$32 k OTar 


3 
1 
1 


3.72 
3.51 

2.83 


144.7 
136.6 

110.1 




156.5 
100.0 
69.6 


ai£0 » OTor 




0.36 






O.IS 









AveragQ $2.57 



and over. That is, the amounts, on 
the whole, decrease as the stores 
increase in size. 

For the entire group of stores, the 
expenditures for advertising per $100 
of total selling expense increase as 
the sales per full-time sales-person 
increase. For the stores classified 



Average $0.23 

by size, the direction of the change 
is uncertain. Moreover, when the 
amounts are expressed per $100 of 
selling expense per stock turnover, 
they seem neither to increase nor 
decrease regularly with the amount 
sold per full-time sales-person. 
In Table 260 the stores are classi- 



360 



fied by size and by the amounts sold 
per full-time sales-person. Advertis- 
ing expenditures are shown as pro- 
portionate parts of selling expense, 
reduced to a unit basis — $1,000 of 
sales per full-time sales-person. Stated 
in this form, the average amount for 



the 269 stores is $1.09. For those 
with sales under $40,000, it is $1.13, 
and from this as a maximum, the 
amounts decrease to $1.04 for the 92 
stores with sales of $80,000 to $180,- 
000. Within each group of stores, 
the average expenditures for adver- 



TABLE 259 

AMOUNT OF ADVERTISING PER $100 OF SELLING EXPENSE PER STOCK TURNOVER, FOR 
STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SALES PER FULL- 
TIME SALES-PERSON, 1919 





ABOTtnt of 
Sal9S par 
Pvill-tUn* 
S«le8-psrB(m 

Un OOO'i) 


Miatber 

of 
StorM 


Advertising per $100 of Selling Bxpeneo 


AdTortlslug por $100 of Selling Zxpanu 
par Stock TumoTer 


Tot«l 


tMcnmX 

( 


r«r Cant. 


Awmnt 



Per Cent. 


(m coo'i) 


<^"f-^-^° I Actual 
20 40 60 BO 100 120 140 IM 150 


Orapblo 
20 40 so 60 100 12p 140 160 


Actual 




Total 
(ATQr«ge) 


269 


tM.lS 




100.0 


tio.oe 




100.0 










Cular tl2 
»12 to $16 
tl6 to ti* 
t24 to tSZ 
t3Z & OTor 


30 

se 

103 
44 
S< 


21.57 
17.43 
19.97 
24.50 
29.23 




97.3 
78.8 
90.2 
U0.7 
132.1 


12.69 
6. so 
9.99 
10.21 
10.44 




128.1 
82.5 

99.3 
101.5 
103.8 








(AT«r«ge) 


^"^^"*' 






















Tot»l 
(ATor.go) 


31 


19.15 


' 


S6.S 


12.77 




126.9 










CJruJor t-2 
»12 to »16 
tl6 to »24 
%1* to t33 
$32 & ovor 


9 

4 
7 
7 
4 


18.16 
16.32 
12.79 
17.60 
38.05 




62.1 
73.7 
57.6 
80.4 
171.9 


12.97 
9.07 
9.84 
10.47 
23.78 


128.9 
90.2 
97.8 
104.1 
236.4* 


Oadn %*0 


— ; 






' 




"^^^^^^T 






1 




tot«l 
(ATor»«) 


103 


16.28 


82.6 


lo.ia 


101.0 






1 




Cndor lia 
♦12 to »16 

tie to t2« 

»2« to »32 

♦JZ k 0T«F 


IS 
34 

31 
9 
13 


15.76 
19.43 
IT.OO 
17.75 
23.41 




71.2 
67.8 
76.8 
80.2 
105.6 


10.51 
U.43 
9.44 

8.45 
12.32 


104.5 
11S.6 
93.8 

84.0 
122.5 


}4o to teo 


^^^"^^"^ 






















Total 
(ATorago) 


92 


20.03 


90.5 


10.54 














Dmn' (12 
liz to tie 
tie to t2i 

t24 to t32 
t32 » o«r 


4 
IS 
50 
14 

9 


so.sa 

16.91 
20.46 
21.99 
16.93 


139.5 
76.4 
92.5 
97.4 

76.5 


16.25 
8.46 
U.37 
10.47 

e.os 


161.6 
84.1 


lao to tiso 












104.1 

60.1 










Total 
(Average) 


43 


24.37 


UO.l 


0.03 








; 






DBder tl2 
$12 to tie 
tie to $2« 

t24 to tS2 

$32 «i OTor 


1 
3 
IS 
14 
10 


24.06 
15.48 
20.20 
2S.B8 
34.51 




106.7 
70.0 
91.3 
U6.9 
155.9 


9.62 
5.34 

7.77 
9.95 
10.78 




»1B0 » cjT«r 






53.1 
77.2 














107.2 









ATorago |10,C6 

*Pull langth not ahom 



361 



TABLE 260 



AMOUNT OF ADVERTISING PER $100 OP SELLING EXPENSE PER $1,000 OF SALES PER 

FULL-TIME SALES-PERSON, FOR STORES CLASSIFIED BY SIZE AND BY 

AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 





^nmt of 
S*l«« por 

mn-tiM 
(is'ooo^r 


of 
»t«r«« 


AdTartUiBS par (100 of SaUlae lipaiiM 


Advertising par 
(1,000 of Saloa 


(100 of Sailing Sipenia par 
par Ptai-tlna Salae-peraoa 


ciuiiri*a 

Total 
lot Sadaa 
(lo ooo'm) 


A«.t 


tmr Cant. 


AKont 


Par Cant. 


OrapUs 1 
20 40 6p eo 190 120 1^ 160 180 


Actaal 


20 40 


Oraphle 1 Aatnal 
60 80 100 120 1^0 1^ 1^ 




To«d 


ttQ 


(22.13 




100.0 


(1.09 




100.0 










Ondar (12 
(12 to (16 
(le to (24 
(24 to (32 
(32 k OTor 


30 
50 

103 
44 
36 


21.57 
17.43 
19.97 
24.60 
29.23 


»T.» 

78.8 
90.2 
110.7 
132.1 


2.U 
1.23 

1.05 

0.89 
0.71 


194.5* 
112.8 
9«.S 
61.7 
68.1 








(ATerft^) 






















Total 
(ATorage) 


31 


la.u 


86.3 


1.13 


US .7 










Ikidar (12 
(12 to (16 
(16 to (24 
(24 to (32 
(32 k OTor 


a 

4 
7 
7 
4 


18.16 
16.32 
12.79 
17.80 
38.03 


82.1 
73.7 
57.8 
80.4 
171.9 


1.81 
1.12 

0.64 
0.62 
1.09 


166.1 

102 .a 

58. T 
56.9 
100.0 


Vmiar (40 


1 




ii... 




1 






Total 
(ATara««) 


103 


18.28 


82.6 


1.10 


100.9 




1 






Oulsr (12 
(12 to (16 
(16 to (24 
(24 to (32 
(S2 k o»«p 


16 
34 

31 

» 
13 


15.76 
19.43 
17.00 
17.75 
23.41 


71.2 
67.8 
76.8 
80.2 
105.8 


1.57 
1.34 

0.90 
0.56 
0.55 


144.0 

122.9 
82.6 
60.9 
50.5 


(40 to (80 










^^^^^^^ 




• 




• 




Total 
(ATorag*) 


92 


20.03 


90.5 


1.04 


9S.4 










ttador (12 
(12 to (IS 
(16 to (24 
(24 ts (32 
(32 k oT«r 


4 
1» 
fiO 
14 

• 


39.88 

16.91 
20. 4« 
21.99 
16.93 


139.5 
76.4 
92.5 
99.4 
76. S 


2.97 
1.25 

i.oe 

0.81 

0.44 


272.S* 
U4.T 
99.1 
74. S 
40.4 


(eo to (ISO 












— 




1 




Total 
(Avera^o) 


4S 


M.ST 


110.1 


1.06 


96. S 




1 






OaiT (12 
(12 to (16 
(16 to (24 
♦24 to (32 
(32 k OTar 


1 
S 

u 

14 

10 


2«.0« 

IS .48 
20.20 
25.88 
34.51 


106.7 
70.0 
91. S 
U6.9 
1SS.9 


2.30 
1.08 

1.06 
0.94 
0.82 


, 


(ISO k OTV 






99.1 
97.2 
66.2 
76.2 


' 




' 


' 













Av*r«ga leS.lS 



Aver age $1.00 

Pull length not shova 



tising, measured in this unit, decrease 
as the amounts sold per full-time 
sales-person increase. For those stores 
in which the full-time sales-person 
sold less than $12,000, the average 
amount is $2.12. It is $0.71 for those 
in which the average sales per full- 



time sales-person were $32,000 and 
over. Similar decreases hold for each 
of the groups of stores when classified 
by size. 

In Tables 261 to 264, inclusive, the 
advertising expenditures per $100 of 
selling expense for 146 stores for the 



362 



combined and individual years 1919, 
1918, and 1914, are set out in detail. 
The basis for classification is the same 
as that used in Tables 255 to 258, 
inclusive, but the amounts are dif- 
ferently expressed. 



For the combined years, as shown 
in Table 261, the average expenditure 
for advertising per $100 of selling 
expense is $21.18. For those stores 
which had sales of $40,000 to $80,000 
it is $18.19, and for those which had 



TABLE 261 

AMOUNT OF ADVERTISING PER $100 OP SELLING EXPENSE PER $1,000 OF SALES PER 

FULL-TIME SALES-PERSON, FOR 146 IDENTICAL STORES CLASSIFIED BY SIZE 

AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 

1919, 1918, AND 1914, COMBINED 



Claiilflal 

Total 
(«t Salas 


AnouBt of 
Bales par 
full-tlM 
fialaa-pereon 
(in OOO't) 


IhHttbar 

of 
Btcro- 
jaara 


Ad7artlBlng p- r (100 of Sailing Bzpanaa 


Advertlalng par 
(1,000 of Salai 


(100 of Sailing Ixpanaa par 
par Pull-tlma Salaa-jerson 


Aooiait 


Par Cant. 


Aaoimt 


Par Cant. 


(Id 000'») 


} 20 40 60 80 100 120 140 


> 20 40 60 


Orapblo JAotuU 
80 lOO 120 140 160 180 2001 




total 
(Arerage ) 


438 


(21.18 


i 


100.0 


(l.Sl 




100.0 










(12 to tlS 

(le to U* 
t24 to Ise 

|32 & oTor 


151 
107 

lis 

3S 
2S 


20.76 
19.33 
20.22 
24.96 

28.se 


B8.0 
91.4 
«5.6 
117.8 
126.8 


2.21 
1.41 

1.06 
0.91 
0.72- 


168.7 

107.6 
80.9 
69.6 
55.0 








(AToras*) 










1 
1 












Total 
(AToraga) 


12S 


19.80 


S3.S 


1.90 


14S.0 






1 




uadar tl2 
tl2 to tie 
(le to (24 
(24 to (S2 
(52 k OTar 


71 

ss 

17 
U 

4 


1S.4* 
19.43 
17.64 
28.77 
44.26 


8T.8 
91.7 
83.3 
135.8 
209.D* 


2.38 
1.42 

0.9S 
1.05 
1.19 


181.7 
108.4 
71.0 
80.2 
90.8 


VDitT UO 






' 














1 
1 




Total 
(Avarago) 


1£S 


18.19 


85. « 


1.36 


103.8 






1 




ttadar (12 
(12 t« (16 
(16 to (24 
(24 to (32 
(32 k over 


es 

46 
3S 

7 
7 


17.76 
18.07 

IB. 65 
21.08 
20.06 


83.9 
85.3 
88.1 
S9.5 
94.7 


1.78 
1.31 
1.02 
0.77 
0.47 


13S.9 
100.0 

77.9 


tto to tso 




^^^^^^^, 




^^"^^"""""^ 






1 
















Totol 
(Avaraga) 


108 


21.26 


100.3 


1.28 








1 


' 




Ondar (12 
(12 to (16 

(16 to (24 
(24 to (32 
(32 k ovar 


14 
91 
46 
1£ 
5 


29.76 
19.41 
21.49 
19.62 
18.13 


126.3 
91.6 

101.5 
92.6 
85.6 


2.64 

1.40 

l.is 

0.73 
O.SO 


201.5 
106.9 
86.3 








i&o to (leo 










• 
















Total 
(ATaraga ) 


4e 


22. 5S 


106.5 


1.11 








1 






ODdar (12 
(12 to (16 
(16 to (24 
(24 to (32 
(32 1. o,.r 


S 
6 

17 
10 

7 


25.20 
20.41 
19.82 
26.87 
29.75 


119.0 
96.4 
93.6 
126.8 
140.5 


2.41 
1.52 
1.01 
0.97 
0.81 




JlBO i onr 










, 








i 










61.8 



ATon«* li.n 



roll leugtb not tbova 



363 



TABLE 262 



AMOUNT OF ADVERTISING PER $100 OF SELLING EXPENSE PER $1,000 OF SALES PER 

FL'LL-TIME SALES-PERSON, FOR 146 STORES CL.VSSIFIED BY SIZE AND 

BY AMOUNT OF SxVLES PER FULL-TIME SALES-PERSON, 1919 





Aatnint of 
S.li>. poi- 

p\iH-ti»o 

Soltto-pxrooa 
(la OOO'.) 


of 
Stoi-M 


ftd,«^i.i«8 p- tioo o, s.m.s arp-" 1 Vi.'SS? oflSr.*^? ^n^Tt^S^YirJ^r.?.' 


TOtO 
lot S<loo 
(IB OOO'o) 


JUKSBt 


f «r Otcft. 


^ 


Tor Cor.t. 


Qropblo 
J W 40 eO so 100 120 140 


Aotcol 


) 20 40 ep ep 100 ISO 140 160 ISO 2O0 




Sotftl 
(Inrogo) 


14S 


t21.U 




100.0 


tl.03 




100.0 










ObAv tu 

tl2 to tie 
tie to t34 
t£4 to t32 
tsa ft onr 


U 
SO 

U 

ai 

u 


a4.6i 
u.se 
u.u 
xs.n 

2e.B2 


U6.4 
7T.9 

es.e 
una 
I2e.s 


3.83 

lao 
o.ge 
o.se 

0.71 




24S.6* 


Totd 
Utcks*! 










83.3 
B5.1 

ee.9 






1 






1 








«>tol 

Uwoa*) 


M 


91.93 




loc.o 


1.3T 




133.0 










ttoe«r tl2 
tu to tie 
tie to t24 

tS4 to t9< 
%S» ft OTW 


8 

4 
* 
S 


u.sa 
is.sa 

10.08 
80.33 

48.se 


si.a 

71.4 

•T.8 

•ea 

«W.7» 


1.97 
104 

o.si 

0.7» 
1.40 


191.3 
110.7 
49.S 


Oidftr ttO 


-— 




^mmam 








13S.9 






1 

1 


lotad 


M 


17.18 


81U 


i.oe 


101.9 




U».l»«o) 






e 
u 
u 

4 

e 


13.U 

u.oe 

18^4 
23.08 
10 .S8 




ea.e 
ae.a 
T«.a 
aos.a 
ae.T 


1.5» 
1.28 
0JB1 
0.86 
0.48 


133.0 
124.3 
84. S 

83.3 
46. S 


•«a to teo tu to tie 

)1S to t2« 
tM to t3t 
»32ft r^F 






.^^^_____ 






1 
1 






?t.t«l 
(iTorogo) 


M 


U.3« 


S1.S 


1.08 


102.9 






1 




OBdor tu 
tu to tu 
tu to %M 
t24 to tSS 
taftorcr 


a 
u 

30 

7 
« 


seas 

u.ao 

M.70 

es.es 
is.u 




S«8.S» 
M.3 
S3.X 

107.1 


S.61 

O.ge 

1.08 
0.89 
0.44 


644.7* 
95.1 

10S.9 
8C.S 
42.7 


lea to tiso 


















1 
1 




»>t.l 
(Anrogo) 


S4 


ta.n 


ioe.4 


0.S4 


91.3 




• 


1 

1 


tlSO ft nar 


Cedar tu 
tu to tie 


S 

e 

7 


1T.45 
37.88 

W.7S 


ea.8 
ux.a 

140.7 


o.ea 

1.00 
0.81 


89.3 
97.1 

78.e 


1 t24 to t33 


^^^^1 








•"""" 




; 



*7u;.l length Bot ohjwn 



sales of $180,000 and over it is $22.55. 
Over the entire range of sizes, the 
amounts increase as the stores in- 
crease in size. When the stores are 
further classified by the amounts sold 
per full-time sales-person, the expen- 
ditures for advertising for the entire 



group, irrespective of size, increase 
as the amounts sold per full-time 
sales-person increase. For stores of 
a given size-group, however, this ten- 
dency is not so evident. For the 
small stores — those with sales of less 
than $80,000 — the amounts seem gen- 



364 



erally to increase as the sales per full- 
time sales-person increase. For the 
other two groups, the direction of 
change is uncertain. 

When the expenditures for adver- 
tising are shown per $100 of selling 
expense for each $1,000 sold per full- 



time sales-person, the average for the 
entire group is $1.31. The largest 
amount — $1.90 — applies to the stores 
with smallest sales, and the smallest 
amount — $1.11 — to those having larg- 
est sales. That is, over the entire 
range of sizes, the expenditures ex- 



TABLE 263 

AMOUNT OF ADVERTISING PER $100 OF SELLING EXPENSE PER $1,000 OF SALES PER 

FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND 

BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1918 





Aaount of 
S>lo> par 
FiOl-tljM 
Salea-peraoD 
(In OOO'i) 


■nbar 

of 
Storoa 


Ad<artlali>e s»r $100 of E«Uln« BiiMns* 


AdTartlslng par $100 of Sailing Expanaa par 
$1,000 of Saloa par Pull-tlaa Salaa-poraon 


Total 
Sot SalM 


ABixmt 


Far Cant. 


Aaoimt 


Per Cant. 




30 40 60 80 100 120 140 160 180 


<=r'P^l» Actual 
20 40 60 80 100 120 140 160 




Total 
Urerago) 


148 


$20J8 




100.0 


$1.30 




100.0 






1 




Vnimr $12 
$12 to $18 
$16 to $24 
$24 to $33 
$33 h onr 


SO 
42 
37 
14 

S 


19.23 

10.67 
21.S1 
13.83 
29.90 


94.S 
92.1 

108.0 
92.9 

147.4 


1.89 
1.39 
1.10 
0.69 
0.80 


145.4 

106.9 








Uvoraso) 




1 






^^^ 


53.1 
61.5 




, 




1 
1 




total 
(ATorago) 




S0.9 


1.56 


120.0 






"•" 


1 


' 




Itedar $12 
$12 to $ie 

$16 t. $24 

$24 to $J2 
$32 h onr 


21 

7 
S 


15.72 

19.30 

i4.oa 


77.5 
SS.3 
69.3 
173.8 
12V.3 


1.80 
1.43 
0.75 
1.3S 
0.81 


138.5 
110.0 
57.7 
96.2 
62.3 


VaiKf $40 




1 


1 
1 






3 1 32.30 








1 

1 




Total 
(Areraga) 


CI 17.42 


63.* 


1.32 


lOl.S 




1 






Dndar $U 
$12 to $ie 

$16 to $24 
$24 to $32 
$32 . ovr 


24 j 13.34 
30 17.05 
15 16.17 
3 i 17.53 


90.4 

84.1 

79.7 
86.7 


1.73 
1.29 
0.69 
0.62 


133.1 

96.9 
68.3 
47.T 


$40 to $80 


IB^^iM^iV f 















1 
1 




Total 
(Averago) 


S2 1 21.83 


107.6 


1.28 


96.5 




1 






Qad«r.$lS 
$12 to $1» 
$1« to $24 
$24 to $32 
$32 h orar 


S ' 26.43 


130.3 
108.6 
109.8 
83.6 
145.2 


2.36 
1.S8 
1.11 

0.63 
0.81 


181.5* 
120.0 
85.* 
4S.S 
63.5 


$80 to $ieo 


^^T^ 




10 
5 

1 


22.27 
le.95 
29.44 

20.99 


"^■■■■■■^■T 








■■■" 




r 








Total 
(ATorago) 


13 


103.3 


1.17 


90.0 




1 
1 




$1S0 « oTsr 


Vaimr $12 
$12 to $1« 
$16 to $24 
$34 to $3S 

$3et oTw 


4 
7 
3 


17.47 
2a.97 
18.57 


86.1 
U2'.8 
91.6 


- 
1.36 
1.13 
0.67 


106.2 
66.9 
Sl.S 








, 


^— 




^^^^^^^^ 1 



AT«r«^ $1.30 

•?UU langt^ not choi 



365 



TABLE 264 



AMOUNT OF ADVERTISING PER $100 OF SELLING EXPENSE PER $1,000 OF SALES PER 

FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND 

BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1914 





Aammt of 
Balea per 
Poll-tlae 
Saloe-perBPn 
(in.ooo'e) 


Boater 

of 
Store* 


Advertising per $100 of Selling Bxpesae 


Advertlalng per $100 of Selling Sxpanso per 
$1,000 of Sales per Pull-tlno Sales-porcon 


cussinsd 

Tot.l 
Bet &*!•• 
(In OOC'e) 


taoant 


tor Cent. 


Amount. 


Per Cent. 


QrspUo 1 Aetual 
3 20 40 60 80 100 120 140 


Graphic 1 ^^^^ 
) 20 40 60 80 100 120 1^ 




Total 
(ATersge ) 


146 


$22.64 




100.0 


$2.00 




100.0 










Dbder $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 & OTor 


86 
5S 

20 

4 
1 


20.99 
23.36 
27.85 
20.17 
12.46 


92.7 
103. 5 
125.0 
89.1 
55.0 


2.34 

1.67 
1.49 
0.73 
0.33 




117.0 

63.5 








(AT«rags) 




— 






56.5 

16.5 




— ^ 




Total 
(Average) 


71 


20.29 




89.6 


2.26 


113.0 










Older $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 » over 


45 

15 

e 
» 


19.73 
19.81 
26.94 
21.99 

- 




87.1 
87.5 
119.0 
97.1 


2.74 
1.43 

1.45 
0.S2 


137.0 
71.5 
72. S 
41.0 


Under Uo 



















Total 
(Average) 


4a 


19.90 


87.9 


1.77 


88.5 










Onilar $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 k over 


SI 

10 
6 

1 
1 


18.52 
19.99 
51.06 
19.20 
12.46 


80.9 
88.3 
157.2 
84.8 
S5.0 


1.90 
1.46 
1.76 
0.67 
0,55 


95.0 
73.0 
88.0 
33.5 
16.5 


$40 to ^ 












^" 




— 




Total 
(Average) 


22 


24.60 


108.7 


1.91 


95.5 










Older $!£ 
$12 to $16 
$16 to $24 
$24 to $32 
$32 k over 


» 

e 


22.74 
23.87 
29.11 


100.4 
104.1 
128.6 


2.35 
1.75 
1.51 


117.5 
86.5 
75.5 


|eo te (180 
















Total 
(Average) 


B 


£5.25 


Ul.S 


1.96 


98.0 










UnHer $12 
$12 to $16 
$16 to $24 
$24 to $32 
$32 t over 


s 

1 
1 


26.20 

26.50 
21.54 


111.3 
116.2 
95. 1 


2.41 

1.76 
1.20 




120.5 
87.5 


liao & oTsr 












I 





Average $22 .64 



Average |2*00 



pressed in this form decrease. Within 
each group of stores, moreover, when 
they are further classified by the 
amounts sold per full-time sales- 



person, the advertising expenditures 
decrease. For the entire group in 
which the sales per full-time sales- 
person are less than $12,000, the ex- 



366 



penditure for advertising, expressed 
in this form, is $2.21, while for those 
in which the amount sold per full- 
time sales-person is $32,000 and over, 
the amount is $0.72, Similar de- 
creases hold for each of the groups.* 
The basis of classification normally 
requires this. 

In Tables 262 to 264, the expendi- 
tures for advertising, for stores classi- 
fied as in Table 261, are shown for 
the years 1919, 1918, and 1914, re- 
spectively. The amounts for the dif- 
ferent groups of stores from year to 
year, as well as the tendencies which 
they may have to increase or to de- 
crease when differently classified, are 
fuUy set out in the tables, and it is 
unnecessary to review them in detail 
at this point. 

In considering these tables, the 
reader should remember that care has 
been taken to eliminate, so far as 
possible, all elements of error in the 
data and to classify the stores in the 
detail necessary to make comparisons 
of significance. To have printed the 
frequencies with which the different 
items occur, or even the highs and 
lows in the detail provided for in the 
tables, would have unduly compli- 
cated the tabulations and probably 
been of little value in the interpreta- 
tion of the norms or standards shown. 
One of the many reasons for showing 
the expenditures in the form of com- 
plex units has been to obviate the 
necessity for elaborating the tabula- 
tions. 

* There is a slight exception to this rule 
for the stores having annual sales less than 
$40,000. 



C. — Yearly Amounts of Expenditure 
for Advertising per $100 of Total 
Net Sales and per $100 of Selling 
Expense, for Stores Classified by 
Size and hy Size of City in 
Which Located* 1919, 1918, and 
1914. 

Analysis has shown that the size 
of the city in which stores are located 
helps to determine the amounts of 
expenditure for store operations. In 
order to take note of this factor in 
the discussion of advertising expen- 
ditures, a group of 103 stores with 
annual sales of $40,000 to $80,000 in 
1919 has been classified in Tables 265 
to 268, inclusive, by location and 
further by the amounts of sales per 
full-time sales-person. 

Table 265 shows that the average 
expenditure for advertising per $100 
of total net sales for the 89 stores 
located in cities with population 
under 40,000 was $1.32. It also 
shows that the corresponding amount 
for the 14 stores located in cities with 
population of 40,000 and over was 
$1.64. When the amounts expended 
for advertising are expressed per 
$100 of total net sales per stock turn- 
over, they constitute, on the average, 
$0.78 for the stores in the two city- 
groups. When they are expressed in 
terms of $100 of sales for each $1,000 
sold per full-time sales-person, as in 
Table 266, the average amount for the 
stores in the large cities is $0.09, 
and for those in the small, $0.08. 

For the stores in each of the city- 
groups, when further classified by the 

* Population figures are for 1920. 



367 



TABLE 265 



AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES PER STOCK TURNOVER, FOR 

STORES WITH SALES OF $40,000 TO $80,000, CLASSIFIED BY SIZE OF CITY 

AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 





imnmt of 
Soles p«r 
Pull-tlE» 
tAloB-perflon 
(In OOO'i) 


Vinbcr 
or 

stores 


Advertising per $100 of Total let Sales 


Advortlalng per tloo of Total let Sales pep 
Stock Turnover 


site 

of 


Asount 


Per Cent. 


Amount 


Fer Cent. 


CltT 
(lo OOO'i) 


(SrapMc 

D 20 40 eO 80 ICO 120 140 160 ISO 


Actual 


<^"P"' 1 Actual 
1 20 40 60 60 100 120 140 




Iot»l 
(Average ) 


103 


tl.S7 


^^^^^^^^^ 


100.0 


$0.76 








1 


: 






DBdsr «12 
tl2 to )16 
«16 to »24 
$24 to t52 
tS2 k OTcr 


16 
M 

51 
9 
IS 


1.42 

1.67 
1.12 
1.27 
1.18 


103.6 
121.9 

61.8 
»2.7 
86.1 


0.95 
0.98 
0.62 
0.60 
0.62 


i2s:o 

128.9 
61. e 
76.9 
81.6 


Itet»l 
(Average) 




1 ■' 


l" 


^^1^^,^^ 










1 


^^^^^^^^ 




1 






Total 
(ATerago ) 


89 


1.S2 


96.5 


0.78 


102.6 










Ondsr tl£ 
|1£ to tlS 
tie to t£4 
t£4 to tSZ 
t52 » <mr 


14 

£9 
£9 
6 
U 


1.4S 

1.70 
1.01 
1.00 
1.2J 


los.e 

124.1 
73.7 
73.0 

es.e 


0.S7 
l.OO 
e.S9 

o.se 


127.9 


40 




1 






77.8 
7S.T 




0.62 


^^^^^^^m 






1 


1 






Itttal 
(ATorago) 


14 


1.64 


119.7 


0.78 






• 


1 






tkidor tl2 
tl2 to tl6 
tie to $24 
$24 to t52 
$S2 4 over 


2 

S 
2 
S 
2 


1.26 
1.56 
2.36 
1.77 
0.B9 


92.0 

ii:.9 

173.7 
129.2 
65.0 


0.79 
0.76 
0.72 
0.71 
0.66 




«0 ana 


^^"^^^ 1 


, 


102.6 


^^^^^mm^m 


1 






■ 










75.7 










Average (1.57 






Averse tO«76 





amounts sold per full-time sales- 
person, there is no unmistakable ten- 
dency for advertising expenditures to 
increase or to decrease as the sales 
per full-time sales-person increase. 
This generalization applies to the 
amounts expressed in terms of sales 
and in terras of sales per stock turn- 
over. When they are expressed in 
terms of sales for the amount sold 
per full-time sales-person, however, 
they decrease for the stores in the 
two city-groups, as shown in the 
right-hand column of Table 266. The 
actual amounts of expenditure, as 
shown in Tables 265 and 266, consti- 



tute the standards or norms which are 
discovered for this group of stores for 
a single year. 

In Tables 267 and 268, the amounts 
of advertising expenditure are shown 
for a group of 103 stores classified by 
location and sales per full-time sales- 
person. The method of expressing 
them is, first, in terms of selling ex- 
pense alone; second, in terms of sell- 
ing expense per stock turnover; and, 
third, in terms of selling expense per 
$1,000 sold for a full-time sales- 
person. As sliown in Table 267, ad- 
vertising constitutes $18.05 out of 
every $100 of selling expense for the 



368 



stores located in the small cities. For 
those located in the large cities, the 
corresponding amount is $19.42. 
"When these expenses are reduced to 
a per stock turnover basis, the aver- 
age amount for the stores in the small 
is $10.62 and for those in the large 
cities, $9.25. That is, in terms of 
selling expense alone, the average 
amount is higher in the large cities, 
and in terms of selling expense per 
stock turnover, lower in the large 
than in the small cities. A more 
satisfactory basis for comparing these 



amounts would be to select stores 
with the same sales per full-time 
sales-person, but with different loca- 
tion. The data, however, for stores 
in the large cities are insufficient to 
admit of such a comparison. 

When the advertising expenditures 
are shown per $100 of selling expense 
per $1,000 sold per full-time sales- 
person, as in Table 268, the average 
amount for the stores in the small 
cities is the same as that for those in 
the large cities. For stores of differ- 
ent location, but with the same 



TABLE 266 

AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES PER $1,000 OF SALES PER 

FULL-TIME SALES-PERSON, FOR STORES WITH SALES OF $40,000 TO 

$80,000, CLASSIFIED BY SIZE OF CITY AND BY AMOUNT OF 

SALES PER FULL-TIME SALES-PERSON, 1919 





Anmir.t of 
Sales per 
Poll-time 
Baleo-pereon 
(In OOO's) 


limber 

of 
Stores 


AdvortlBlng per $100 of Totol Sot 


Sales 


Advertising per 
$1,000 of Sales 


^100 of total let Sales per 
per Pull-tlmo Sales-person 


of 

city 

(In 000' o) 


Aooust 


Per Cent. 








Per (^nt. 


OrachK- 
r 20 40 6<p ep lop 120 14 


Actual 
3 


3 20 40 60 


°"'^^' ] Actual 
60 100 120 140 160 ISO 




Total 
(Average) 


103 


$l.»7 


' 


100.0 


$0.03 




100.0 




: 






Under tl2 
$1£ to $16 
516 to $24 
t24 to in 
(32 i over 


16 
34 

31 

9 
IS 


1.4« 

1.67 
1.12 
1.27 
1.16 


103.6 
121.9 
81.6 
92.7 
86.1 


0.14 

0.12 
0.06 
0.05 
0.03 


175.0 
150.0 
76.0 
62.S 
ST.S 


Totel 


1 




(ATorage) 








1 


— 








1 




Total 
(Average) 


69 


1.32 


96.3 


O.OS 


100.0 




1 


^^ 




Ondor tl2 
$12 to $16 
$16 to $24 
$24 to $12 
$32 t over 


14 
29 
29 
6 
11 


1.46 
1.70 
1.01 
1.00 
1.23 


105.6 
124.1 
73.7 
73.0 
89.8 


0.14 
0.12 
0.05 
0.04 
O.OS 


175.0 
ISO.O 
62.6 
50.0 
ST.S 




', 


' 


40 




1 

^^^^ 

■■^ 

1 
1 




1 




Total 
(Average ) 


14 


1.64 


U9.7 


0.09 


U2.5 




1 


' 




Dader $12 
$12 to $16 
$16 to $24 
$84 to $32 
$32 k over 


2 

6 
2 
3 
2 


1.^6 
1.56 
2.38 
1.77 
0.89 


92.0 
113.9 
173.7* 
129.2 

65.0 


O.IS 
0.11 
O.U 
0.07 

cr.o2 


162.B 
137.5 
137.5 
87.5 
25.0 






1 


















I^H 



A7orage |0.08 



Pull leoGtb Dot ahosD 



369 



TABLE 267 



AMOUNT OF ADVERTISING PER $100 OF SEULING EXPENSE PER STOCK TURNOVER, FOB 

STORES WITH SALES OF $40,000 TO $80,000, CLASSIFIED BY SIZE OF CITY 

AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 





Aaount ot 
Sftl«« par 

S*le8-p«rsoQ 
(in OOO'lI 


Viabor 

of 
Stor«> 


AdTcrtlatsg per $100 of SelUng Siq>imM 


AdTertlalns per $100 of Selling BxpeDS» 
per Stock Tumovor 


81 u 

of 
City 


Aaount 


Per Cent. 


Aaount 


For Cant. 


Graplile 
1 20 40 60 80 ICp 120 1^0 160 160 


Actoaa 


araphio 1 Actual 

3 20 40 60 80 I90 120 140 




Tot»l 


103 


$1S.28 


1 


■100.0 


$10.16 




100.0 




OaivT tl2 
tl2 to $16 
tie ta $24 
♦24 to »i2 
$32 h over 


16 
M 

31 
9 
15 


IS .76 
19.43 
17.00 
17.75 
23.41 




86.2 
106.3 
93.0 
97.1 
123.1 


lO.Sl 
11.43 
9.44 
e.4S 
12.52 


1 


103.4 
112.5 
92.9 
83.2 
121.3 






7 


U*aFae«) 




' 






















Total 
(Avorage) 


e» 


IS.OS 




98.7 


10.62 




104.5 










Osdar $12 
$12 to $16 
$16 to $24 
$24 to $32 
$52 i over 


14 

29 

29 

e 
u 


18.37 
20.01 
15.44 
15.48 
25.24 


84.1 
109.S 
84.S 

84.7 
138.1 


10.25 
11.77 
9.08 
8.60 
12.62 




100.9 
115.8 
89.4 
84.6 
l£4.e 








40 


























Total 
(Average ) 


14 ' 


19.42 


106.2 


9.25 


91.0 






; 




Osder $12 
$12 t« $18 
$16 to $24 
$24 to $32 
$S2 «c OTor 


2 
S 
2 
3 
2 


20.16 
16.66 
32.72 
17.68 
14.30 


U0.3 

91.1 
178.0 
96.7 
78.2 


12.60 
8.33 
9.92 
7.07 
8.94 


124.0 
82.9 
97.9 
69.6 
88.0 


40 and 




. ^ 


OT«r 








' 















ATarB^ ilS«Sft 



ATerago |10*16 



amounts sold per full-time sales- 
person, the average expenditures are 
different. In most eases the number 
of stores is inadequate to serve as a 
basis for comparison. For stores 
within both city-groups, however, the 
advertising expenditures, measured 
in this form, decrease as the sales per 
full-time sales-person increase. 

D. — Summary. 

(1). The amounts of advertising 
expenditure per $100 of total 
net sales per $1,000 of sales 
for a full-time sales-person 
decreased between 1914 and 
1918, and 1918 and 1919. 



This holds for all stores and 
for stores of a given size. 

(2). The amounts of advertising 
per $100 of selling expense 
per $1,000 sold for a full- 
time sales-person decreased 
between 1914 and 1918, and 
1918 and 1919, for all stores 
and for stores of a given size. 

(3). For stores of a given size, the 
expenditures for advertising, 
measured in terms of sales 
alone, tend to increase as the 
sales per full-time sales-per- 
son increase. When measured 
in terms of sales per stock 



370 



TABLE 268 



AMOUNT OF ADVERTISING PER $100 OF SELLING EXPENSE PER $1,000 OF SALES PER 

FULL-TIME SALES-PERSON, FOR STORES WITH SALES OF $40,000 TO 

$80,000, CLASSIFIED BY SIZE OF CITY AND BY AMOUNT 

OF SALES PER FULL-TIME SALES-PERSON, 1919 





Amount of 
Salos por 

PUll-tlM 

Seltta-paraon 

(m ooo'«) 


Number 

of 
Storoa 


Adrartlalng par ♦lOO of Sailing Sxpenia 


AdTortlaln^ per 
♦1,000 of Salaa 


♦loo of Salllag Bzpanaa per 
par Pull-tljw Salaa-peraon 


of 

city 

(In 000'«) 


AiBount 


?«> Cant. 


Aoount 


far Cent. 


) 20 40 60 Sp 100 1^ 140 160 ISO 


Actual 


) 20 40 


1 ActnaJL 

60 80 100 120 140 160 




Tot»l 
(Av«r«go ) 


103 


♦la. 28 


^J 


100.0 


♦l.lO 


■'■ '-1— 


100.0 




1 


( 




Dndar ll£ 
tl2 to tie 
tlS to t24 
t24 to tS2 
♦32 i o.,r 


16 
Si 

31 
9 
13 


13.78 
19.43 
17.00 
17.73 
23.41 


86.2 

lee.s 

«3.0 

97.1 

128.1 


1.57 
1.34 

0.90 

0.66 
0.56 


142.7 
121.8 
81.8 
60,0 
80.0 


Tot«l 


' 




(ATer«g«) 


^^^^^^^m ' 






^^^^^ 1 


• 






1 




1 




Total 
(ATOragt) 


89 


18.0S 


98.7 


l.U 


lOO.O 




I 






ttadar tl2 
tl2 to tie 
tl6 t« tZ* 
ti* to $32 
♦32 k OT«r 


14 
29 
S9 
6 


15.37 
2*. 01 
15.44 
15.48 
25.24 


84.1 
109.9 
84.8 
84.T 

ise.i 


l.SS 
1.S9 
0.88 
0.S7 
0.60 


138.2 
126.4 
74. S 
E1.8 
54.8 


tlni«p 




^I^MHB 


40 




^^^^ 






• 




r 






1 
• 




Total 
t Avarage ) 


14 


19.42 


106.2 


1.10 


100.0 




1 


1 




Dndar tVl 
♦12 to ♦is 
♦16 to ^24 
♦24 to ^32 
♦32 h oTar 


2 
t 
2 
3 
g 


ao.ie 
ie.6s 

32.72 
17.S8 
14.30 


91.1 
179.0 
96.7 
78.2 


2.12 
l.U 
1.S6 
0.67 
0.S2 


102.7 
141.8 
•0.9 
29.1 


40 >nd 


^^""^^""^ 




over 


^^^^^^ , 


^^^^■""^^ 




' 


, 






^^_ 



Avor«8» ^13.28 



Averftg* ll.lO 

*7ull langtb not Aawm 



turnover, and in terms of 
sales for the amount sold per 
full-time sales-person, they 
decrease as the sales per full- 
time sales-person increase, 

(4). The proportions of selling 
expense attributable to adver- 
tising increase as the amounts 
sold per full-time sales-person 
increase for all stores and for 
stores with sales under $80,- 
000. The direction of change 
is not uniform for stores with 
sales of $80,000 and over. 



(5). The amounts of advertising 
expenditures, expressed in 
terms of selling expense and 
stock turnover, are irregular 
for stores with different 
amounts sold per full-time 
sales-person. In terms of sell- 
ing expense and the amount 
sold per full-time sales-person, 
however, they decrease as the 
sales per full-time sales-per- 
son increase. 

(6). For stores of a given size, the 
average amount of advertis- 



371 



ing expenditures per $100 of 
total net sales for a $1,000 
sold for a full-time sales-per- 
son is higher in the large than 
in the small cities. 

(7). For stores of a given size, the 
average amount of advertis- 
ing expenditure per $100 of 
selling expense for a $1,000 
sold per full-time sales-person 
is the same in both small and 
large cities. 

4. — YEARLY AMOUNTS OP EXPENDITURE 
FOR ADVERTISING IN RELATION TO 
EXPENDITURES FOR RENT AND IN- 
VESTMENTS IN FIXTURES, FOR 
STORES CLASSIFIED BY YEARS, BY 
SIZE, AND BY LOCATION. 

The discussion of the amounts ex- 
pended for advertising, considered in 
this section, is based upon stores clas- 
sified according to the amount of rent 
paid per 100 square feet of floor space 
and to the amounts invested in fix- 
tures per $100 of total net sales. In 
outline, it follows closely a similar 
discussion of the amounts of wages 
and salaries paid, although in some 
respects it is less inclusive. 

(1) — YEARLY AMOUNTS OF EXPENDI- 
TURE FOR ADVERTISING IN RELA- 
TION TO EXPENDITURES FOR RENT 
PER 100 SQUARE FEET OF FLOOR 
SPACE, FOR STORES CLASSIFIED BY 
SIZE OF CITY IN WHICH LOCATED.* 

For the purpose of analyzing the 
expenditures for advertising per $100 
of total net sales and per $100 of 

• Population figures are for 1920. 



selling expense for stores paying dif- 
ferent amounts of rent per 100 square 
feet of floor space, a group of stores 
having annual sales between $40,000 
and $80,000 in 1919 is selected. The 
stores are classified in Table 269 by 
the size of the city in which located 
and, further, by their rent expendi- 
tures, measured in units of floor space. 
A brief consideration of this table is 
of interest. 

For the 87 stores located in the 
small cities, as shown in Table 269, 
the average expenditure for adver- 
tising per $100 of total net sales is 
$1.34; per $100 of total net sales per 
stock turnover it is $0.79; per $100 
of total net sales per $1,000 sold per 
full-time sales-person, $0.08; and per 
$100 of total net sales for the amount 
sold per square foot of floor space, 
$0.08. These are the same units 
which are used in the discussion of 
the amounts of wages and salaries 
paid for stores classified in the same 
manner. For this group of stores, the 
advertising expenditures per $100 of 
total net sales increase as the amounts 
paid in rent per 100 square feet of 
floor space increase, the minimum 
amount being $0.88 and the maximum 
$1.67. When the expenditures are 
measured in terms of net sales per 
stock turnover, they likewise increase 
with the increase in rent paid per 
unit of floor space. A similar condi- 
tion obtains when the amounts are 
expressed per $1,000 sold per full- 
time sales-person. On the other hand, 
when they are expressed per $100 of 
total net sales for the amount sold per 
square foot of floor space, they de- 



372 



crease with increasing rent payments 
per 100 square feet of floor space. 
This follows because of the dimin- 
ished floor space which is used under 
conditions of high rental.* 

The amounts of advertising expen- 
diture per $100 of selling expense are 
also shown in Table 269, the same 
units which were used when relating 
them to sales being employed. The 
table shows the amounts for stores 
having different rent expenditures 
per 100 square feet of floor space, and 
it is unnecessary to review them in 
detail. The general directions of 
change agree with those found when 
the amounts are expressed in terms 
of sales. 

One feature of Table 269, however, 
requires brief consideration. The 

* See Table 75 and the accompanying 
discussion. 



lower part of the table shows the 
average amounts of expenditure for 
advertising in terms of sales and of 
selling expense, for 10 stores having 
sales of $40,000 to $80,000, but located 
in cities with population of 40,000 
and over. By consulting the table, 
comparisons maj^ be made of adver- 
tising expenditures for stores with 
similar rentals and sales, but with 
different location. Without reviewing 
them in detail, it is of interest to 
observe that the average amounts per 
$100 of total net sales and per $100 
of selling expense are greater for the 
stores in the large, than for those in 
the small cities. This table should be 
studied in conjunction with the cor- 
responding tables which relate to the 
amounts spent for wages and salaries 
and total selling expense for stores 
similarly classified. 



TABLE 269 

RELATION OF ADVERTISING TO TOTAL NET SALES AND SELLING EXPENSE, FOR STORES 

HAVING SALES BETWEEN $40,000 AND $80,000, CLASSIFIED BY SIZE OF CITY 

AND BY AMOUNT OF RENT PER 100 SQUARE FEET OF FLOOR SPACE, 1919 



size 

of 

Cltj 

(to OOO'a) 


iBormt of 

Rout per 100 

»q. ft. of 

Floor Space 


of 
Stores 


AdTartleloe per $100 of Total Hat Sales 


AdTartlsloe par $100 of BarUng Sxjmbbu 


Salek 
Alone 


Per 

Stock 
Turnover 


Per $1,000 of 
Sales per 
Poll- 1 lice 

Sales-porsoa 


Per Sales 
per aq. ft. 

cf 
Floor Space 


Selling 
Expense 
Alone 


Per 
Stock 

Turnover 


Per $1,000 of 
Sales par 
FaU-tlao 
Sales-person 


Par Salaa 
per sq. ft. 

of 
Floor Spec* 




ATerage 


67 


$1.54 


$0.79 


$0.08 


$0.06 


$18.13 


$10.66 


$1.10 


$1.04 


VBOar 
40 


(tadar $20 
(30 to $40 
$40 to $60 
$60 ft ovar 


U 
4S 

17 
14 


0.88 

i.es 

1.67 
1.S4 


0.44 

0.79 
0.93 
0.96 


0.05 
0.08 
O.U 
0.10 


0.09 
0.07 
0.08 
0.06 


13.44 

18.27 
10.91 

18.88 


6.72 
U.42 
U.06 
11.80 


0.71 
1.09 
1.31 
1.24 


1.36 

1.09 
0.90 
O.70 


40 czid 
OTar 


$60 ft orep 


10 


1.87 


o.ei 


0.11 


0.06 


20.54 


6.04 


1.16 


o.ee 



373 



A- — Sujnmary. 

(1), For stores of a given size, the 
amounts of advertising ex- 
penditure per $100 of total 
net sales increase as the 
amounts of rent paid per 100 
square feet of floor space in- 
crease. 

(2). For stores of a given size, the 
proportions of selling expense 
attributable to advertising in- 
crease as the rental payments 
per 100 square feet of floor 
space increase. 

(2) — YEARLY AMOUNTS OF EXPENDI- 
TURE FOR ADVERTISING IN RELA- 
TION TO INVESTMENTS IN FIX- 
TURES PER $100 OF TOTAL NET 
SALES. 

For the analysis of advertising ex- 
penditures per $100 of total net sales 
and per $100 of selling expense for 
stores classified by the amounts in- 
vested in fixtures per $100 of total net 
sales, the records of 135 stores are 
available. The purpose of this analy- 
sis is to determine the relation, if any, 
which exists between the amounts 
expended for advertising in relation 
to sales and the amounts of the fixture 
investments, similarly expressed. 

A. — Yearly Amounts of Expenditure 
for Advertising per $100 of Total 
Net Sales and, per $100 of Selling 
Expense, 1919, 1918, and 1914. 

Table 270 shows the average 
amounts of expenditure for adver- 
tising per $100 of total net sales for 
135 stores, classified by the amounts 
invested in fixtures per $100 of total 



net sales. Without reviewing the 
average expenditures for each of the 
years for the 135 stores, as a whole, 
attention is directed primarily to the 
amounts in each year for stores hav- 
ing different fixture investments per 
$100 of total net sales. For the com- 
bined years, the average advertising 
expenditure per $100 of total net 
sales, for the stores which had fixture 
investments of less than $2 per $100 
of sales, is $1.84. From this average 
as a minimum, the amounts increase 
to $2.71 for the stores which had $6 
or more invested in fixtures for each 
$100 of sales. For each year, with 
two unimportant exceptions, the ex- 
penses for this purpose increase, as 
the amounts invested in fixtures per 
$100 of total net sales increase. That 
is, a direct relationship between ad- 
vertising expenditures and invest- 
ment in fixtures is found. This is to 
be expected in view of the fact that 
an important service rendered by 
fixtures is the display of goods. In 
the nature of the case, such a display 
involves some expenditure for adver- 
tising. 

In Table 271 the average fixture 
investments per $100 of total net sales 
are shown for stores classified by 
years and further by the amounts of 
advertising expenditure per $100 of 
total net sales. The purpose of this 
table is to show the direct relationship 
which obtains between fixture invest- 
ments and the amounts expended for 
advertising. With a single exception, 
amounts of fixture account vary di- 
rectly with the amounts expended for 
advertising in relation to sales. 



374 



TABLE 270 

TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL 

NET SALES, FOR 135 IDENTICAL STORES CLASSIFIED BY AMOUNT OF FIXTURE 

ACCOUNT PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 





Amount of 
Pljcture Account 

per $100 of 
Total Net Sales 


Number 

of 
Store- 
years 


Total 
Net Sales 


Total 
Advertising 


Advertising per SlOO of Total Net Sales 


Xo«ra 


Amount 


Per Cent. 




GrAphlc Actual 
) 20 40 60 80 100 120 140 




Total 
(Average) 


405 


$40,576,908 


1923,442 


|2.28 


' ' ' ' 1 -'■— 


100.0 




1 

1 




Under |2 
$2 to (4 
i4 to |6 

}6 & over 


72 

131 
86 
116 


8,020,930 
10,428,302 

7,841,253 
14,286,445 


147, 545 
206,442 
182,392 
587,263 


1.84 
1.98 
2.33 
2.71 


80.7 
86.8 
102.2 
118.9 


Total 


1 


(Average) 


• 




1 




1 
1 




Totea 
(Average) 


136 


18,919,233 


412,745 


2.18 


95.6 




1 




Under $2 
$2 to ^ 
fl to $6 

♦e & over 


58 
51 
23 
23 


5,228,703 
4,897,266 
3,173,841 
5,619,423 


100,793 
93, 916 
67,564 

150,472 


1.95 
1.92 
2.15 
2.68 


84.6 
84.2 

93.4 
117.5 


1919 


1 


1 








1 




Total 
(Avorage) 


155 


13,360,145 


293,780 


2.20 


96.5 




1 

1 


1918 


Under (2 
$2 to $4 
|4 to $6 

$6 & over 


20 
45 
34 

56 


2,163,476 

5,706,664 
2,807,944 
4,682,071 


55,524 
75,135 
64,292 
120,829 


1.55 
2.05 
2.29 
2.58 


68.0 

89.0 

100.4 

113.2 


1 




^ 








Total 
(Average) 


135 


8,297,530 


216,917 


2.61 


114.5 








Under $2 
$2 to $4 
$4 to $6 
$6 & over 


14 
35 
29 
57 


628,751 
1,824,582 
1,859,448 
3,984,949 


13,028 

37,391 

50,536 

115,962 


2.07 
2.05 
2.72 
2.91 


90.8 
89.9 
119.5 


1914 








1 




! 





Average |2.28 



In Table 272, the amounts of ex- 
penditure for advertising are shown 
as proportionate parts of selling ex- 
pense. The bases of classification of 
the stores are years and amounts in- 
vested in fixtures in relation to sales. 
For the combined years, the stores 
which had less than $2 invested in 



fixtures for each $100 of sales, spent 
$17.69 in advertising for each $100 
of selling expense, while those which 
had $6 and over invested in fixtures, 
similarly measured, expended $21.38. 
Over the entire range of stores, when 
classified by fixture investments, ad- 
vertising expenditures become a pro- 



375 



portionately larger part of selling 
expense. This holds not only for the 
combined, but also for the individual 
years. There are certain exceptions 
to this rule and these the reader may 
observe for himself by consulting the 
table. 

It is unnecessary to review for each 
of the years the amounts of advertis- 
ing expenditure per $100 of selling 



expense for stores treated without 
relation to fixture investment. This 
has been done in various places in the 
preceding discussion. While the 
amounts in this case slightly differ 
from those for other groups of stores, 
the variations on the whole are of the 
same general nature and the amounts 
not widely different. 



TABLE 271 

TOTAL NET SALES, FIXTURE ACCOUNT, AND AMOUNT OF FIXTURE ACCOUNT PER $100 

OF TOTAL NET SALES, FOR 135 IDENTICAL STORES CLASSIFIED BY 

AMOUNT OF ADVERTISING PER $100 OF TOTAL 

NET SALES, 1919, 1918, AND 1914 





Aaovmt of 

Advertising 

per OlOO of 

Total 

Bet Salea 


number 

of 
Store- 
years 


Total 
Net Sales 


Anount of 
Fixture 
Account 


Fixture Account per $100 of Total Bet Salea 


TSCM 


Amount 


Per Cent. 




Q-"apW.e 1 Actual 
3 20 40 60 BO 100 120 140 160 180 200 




Total 
(Average) 


40S 


$40,576,908 


$1,908,079 


$4.70 


^^^^^^: 


100.0 








Dader %1 
♦l to 42 
$2 to (3 
tS 4 over 


99 
123 
109 

69 


6,041,768 

9,375,659 

14,595,172 

10,564,309 


217,855 
354,297 
674,077 
661,850 


3.61 
3.78 
4.62 
6.26 


76.8 
80.4 
98.3 
133.2 


Total 




(Average ) 














Total 
(Average) 


155 


18,919,233 


738,774 


3.90 


83.0 






1919 


Dnder |l 
♦l to t2 
»2 to »J 
^ 4 over 


39 
39 
42 
15 


3,049,266 
3,903,793 
8,280,017 
5,686,157 


93,17J 
128,510 
339,711 
177,582 


S.C6 
3.29 

4.10 
4.81 


65.1 

70.0 

87.2 

. U)£.3 












Total 
(Average) 


135 


13,360,145 


620,889 


4.65 


98.9 








Under |1 
♦ l to »2 
t2 to |3 
*3 4 over 


36 
44 
35 
£0 


2,112,506 
3,258,720 
4,278,153 
3,710,768 


87,312 
119,980 
204,313 
£09,284 


4.13 
3.68 
4.78 
5.64 


87.9 
78.3 
101.7 
120.0 




















Total 
(Average) 


135 


8,297,530 


548,416 


6.61 


140.6 








Onder tl 
|1 to tZ 
%2 to tS 
|3 4 over 


24 
45 
32 
34 


879,996 
2,213,146 
2,037,002 
5,167,386 


S7,372 
105,807 
130,053 
275.184 


4.25 
4.78 
6.38 
8.69 


90.4 
101.7 
135.7 
184.9 


1914 












; 



Average $4.70 



376 



TABLE 272 

TOTAL SELLING EXPENSE, TOTAL ADVERTISING, AND AMOUNT OF ADVERTISING PEB 

$100 OF SELLING EXPENSE, FOR 135 IDENTICAL STORES CLASSIFIED BY 

AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET 

SALES, 1919, 1918, AND 1914 





Amount of 
Fixture -Account 

per tlOO of 
Total Uet Balea 


number 

of 
Store- 
years 


Total 
Selling 
Expense 


Total 
Advertising 


Advertising per $100 of Sailing bpense 


Tears 


Amonnt 

< 


Per Cent. 




Craphlo Aotnsl 
20 40 60 89 lOp 12p 




Total 
(Average) 


405 


$4,428,098 


$923,442 


120^5 




100.0 




1 

1 




Under $2 
»2 to U 
a to «6 
i6 & over 


72 
131 

86 
116 


852,922 

985,648 

798,319 

1,811,209 


147,345 
206,442 
182,392 
587,263 


17.69 
20.94 
22.85 
21.38 


84.8 

100.4 
109.6 
102.5 


Total 
(ATerage) 
















Tbtal 
(Average) 


155 


1,992,310 


412,745 


20.72 


99.4 








Under J2 
|2 to U 
U to $6 

^6 k oTsr 


38 
61 
23 
23 


556,252 
428,443 
326,474 
702, 161 


100,793 
93,916 
67,564 

150,472 


18.85 
21.92 
20.70 
21.45 


90.5 
108.1 

99.3 
102.8 


1919 
















Total 
(Average) 


155 


1,473,360 


293,780 


19.94 


95.6 








Under |2 
$2 to $4 

p^ to |6 

$6 !c over 


20 
45 
34 

36 


244,748 
570,632 
267,521 
590,559 


33,524 

75,135 

64,292 

120,829 


iy.7o 

20.28 
24.03 
20.46 


65.7 






97.3 

115.5 

98.1 
















Total 
(Average ) 


155 


962,428 


216,917 


22.64 


108.1 








Older (2 
|2 to $4 
$4 to $5 

t6 k over 


14 
35 
29 
57 


52,942 

186,675 
204,324 
518,489 


13,028 

57,391 

50,536 

116,962 


24.61 
20.03 
24.73 
22.37 


118.0 

96.1 

118.6 

107.3 


1914 















Average $20.85 



B. — Yearly Amotmts of Expendi- 
ture for Advertising per $100 of 
Total Net Sales and per $100 of 
Selling Expense, for Stores Clas- 
sified hij Size, 1919, 1918, and 
1914. 

In Tables 273 to 276, inclusive, the 



average amounts of advertising ex- 
penditure per $100 of total net sales 
are computed for stores classified by 
years, by size, and by the amounts in- 
vested in fixtures per $100 of total 
net sales. The amounts may be 
studied from two points of view: 
First, from year to year for stores 



377 



TABLE 273 

TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL 

NET SALES, FOR 135 IDENTICAL STORES CLASSIFIED BY SIZE AND BY 

AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET 

S.\LES, 1919, 1918, AND 1914, COMBINED 





Araotmt of 
Fixture Aooonnt 

per §I00 of 
Total Net Sales 


number 

of 
Store- 
jears 


Total 
Bet Sales 


Total 
Advertising 


Advertising per #100 of Total Het Sales 


Claaairied 

Totftl 
Vet Sales 
(In OOO'b) 


Amoimt 


Per Cent. 


°'''P^° 1 Actual 
5 2p 4p 6p ap 100 120 i4iO 




Total 
(Average) 


405 


#40,676,908 


#923,442 


#2.28 




100.0 








Under #2 
♦2 to |4 
U to «6 

#6 k over 


72 
Ul 

86 
116 


8,020,930 

10,428,502 

7,841,235 

14,286,445 


147,545 

206,442 
182,392 
387,263 


1.84 
1.98 
2.33 
2.71 


80.7 
86.8 
102.2 
118.9 


Total 




(Average ) 






^^ 




I 




Total 
(Average ) 


112 


5,119,809 


54,547 


1.74 


76.5 






Under |40 


Dnder }2 
♦2 to $4 
H to $6 
^6 * over 


14 
28 
27 
43 


403,667 

800,159 

723,519 

1,192,274 


6,768 
12,713 
11,735 
24,111 


1.43 
1.59 
1.62 
2.02 


62.7 
69.7 
71.1 
88.6 




1 




Total 
(Average) 


153 


8,672,180 


145,442 


l.«8 


75.7 




— 


|4o to feo 


Dnder |2 
♦2 to »4 
#4 to |6 
#6 It over 


20 
65 
51 
59 


1,107,291 
3,755,697 
1,653.451 
2,155,841 


10,467 
61,733 
31,295 
41,947 


0.95 
1.64 
1.89 
1.95 


41.7 
71.9 

82.9 
85.5 












Total 
(Average ) 


98 


11,411,444 


253,444 


2.22 


97.4 








Under |2 
#2 to U 

|4 to f e 

♦6 k over 


27 
55 
19 
19 


5,021,911 
3,838,758 
2,592,924 
2,157,851 


56,997 
77,049 
61,961 
67,457 


1.89 
2.01 
2.59 
2.66 


82.9 

88.2 
113.6 
116.7 


#80 to tlSO 
















Total 
(Average) 


42 


17,575,475 


470,209 


2.71 


118.9 




Under $2 
»2 to |4 
U to $6 
$6 & over 


11 
7 
9 

16 


5,487,871 
2,033,788 
5,071,559 
8,780,477 


74,093 

54,947 

77,401 

253r,76e 






93.0 
118. « 
110.5 
131.6 


llBO k over 


2.70 

















Average #2.28 



378 



TABLE 274 

TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL 

NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF 

FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919 



Classified 


Amount of 
Fixture Account 

per $100 or 
Total Net Sales 


Humber 

of 
Stores 


Total 
Het Sales 


Total 
Advertising 


Advertising per $100 of Total Het Sales 


Total 
Hst Sales 
(m 000' e) 


Amount 


Per Cent. 


^^''P^'^ Actual 
) Zp ip 6,0 8,0 100 1^0 1^0 




Total 
(Average ) 


155 


$18,919,235 


$412,745 


$2.18 


1 


100.0 




i 




Qnder (2 
»2 to U 
(4 to $6 
(6 & over 


S8 
51 
25 
23 


5,228,705 
4,897,266 
3,175,841 
5,619,425 


100,793 
93,916 
67,564 

150,472 


1.95 
1.92 
2.13 
2.68 


88.5 


Total 




(Average) 




97.7 
122.9 








^^^"^"" 




Total 
(Average ) 


12 


374,525 


5,686 


1.62 




69.7 




Under $2 
(2 to f4 
(4 to |6 

(6 & over 


2 
4 
5 
3 


62, 964 

129,541 

92,703 

89,117 


1,875 
986 
928 

1,897 


2.98 
0.76 
1.00 
2.15 




136.7 
34.9 
45.9 
97.7 


Ttoder UO 


ZI. 








Total 
(Average) 


52 


2,967,756 


39,857 


1.34 


61.5 


|4o to teo 


Under $2 
|2 to $4 

»4 to (6 
|6 & over 


8 
28 

a 
e 


470, 684 

1,668,927 

431,726 

406,419 


5,202 

24,255 

6; 945 

6,455 


0.68 
1.46 
1.61 
1.34 


— 


51.2 
67.0 
75.9 
61.5 








Total 
(Average ) 


48 


5,603,210 


104,534 


1.87 


85.8 








Under |2 
$2 to $4 
(4 to $6 

$6 8c over 


20 

15 

7 

6 


2,217,649 

1,759,679 

836,118 

789,764 


38,350 

50,856 
17,015 
18,315 


1.75 
1.75 
2.03 
2.52 




79.4 

80.3 

93.1 

106.4 


(30 to $180 
















Total 
(Average ) 


26 


9,975,942 


262,668 


2.65 


120.6 








ttider tz 
%Z to fr4 
#4 to (6 

(6 Be over 


8 
4 
5 
6 


2,477,406 
1,549,119 
1,815,294 
4,534,123 


57,566 

57,819 

42,676 

124,807 


2.32 
2.80 
?.35 
2.88 


106.4 
128.4 
107.8 
132.1 


♦l80 Jt over 




, 











Average |2.X8 



379 



of a given size, and second, from 
store-group to store-group in each of 
the years for stores classified by size, 
with variable amounts invested in 
fixtures. The latter comparison is of 
chief interest. Without reviewing in 
detail the averages under the condi- 
tions established in the tables, it is of 
interest to observe that the expendi- 
tures increase with the amounts in- 
vested in fixtures per $100 of total 
net sales. This condition obtains for 
the stores treated as a whole and, with 
minor exceptions, when they are clas- 
sified by size. A single group of 
stores — those with sales of $40,000 to 
$80,000 — for the combined years, may 
be used to illustrate this tendency. 
The average for this group of stores 
is $1.68. For those which had invest- 
ments in fixtures of less than $2 for 
each $100 of sales, the average 
amount is $0.95. For those with fix- 
ture investments of $2 to $4, similarly 
measured, the average is $1.64; for 
those with fixture investments of $4 
to $6 it is $1.89; and for those with 
fixture investments of $6 and over, it 
is $1.95. Similar increases hold for 
each of the other groups of stores, 
although the actual amounts, tending 
as they do to increase with the size of 
the stores, are different. 

In Table 274, the expenditures for 
advertising per $100 of total net sales 
are shown for the 135 stores classified 
by the amount of their fixture invest- 
ment in 1919. For the entire group 
of stores the average for this year is 
$2.18, as compared to $2.28 for the 
combined years. For the group of 
stores with sales of $40,000 to $80,000, 



it is $1.34, as contrasted with $1.68 
for the combined years. In this 
group, however, there is the same 
tendency for the expenditures to in- 
crease with an increase in fixture in- 
vestments per $100 of total net sales. 

It is unnecessary to review the ac- 
tual amounts of advertising expendi- 
ture for stores in 1918 and 1914. They 
are contained in Tables 275 and 276, 
respectively. It is, however, advisable 
again to call to the reader's atten- 
tion the fact that, while 135 identical 
stores are studied from year to year, 
both the sales and the investments in 
fixtures in the stores varied from year 
to year, with the result that the same 
stores are not encountered in a given 
sales or fixture investment group. In 
spite of this fact, however, there is an 
advantage in using a group of iden- 
tical stores over one in which not only 
sales and fixtures, but also the num- 
ber, vary. 

Because of the direct relationship 
which obtains between fixture invest- 
ments per $100 of total net sales and 
advertising expenditures, similarly 
measured, it has been thought of in- 
terest to include Tables 277 to 280, 
inclusive, which show for the 135 
stores, the average amounts invested 
in fixtures per $100 of total net sales 
for stores having different classified 
amounts of expenditure for advertis- 
ing in relation to sales. The stores are 
classified according to size. 

For the combined years for all the 
stores, the average fixture investment 
per $100 of total net sales is $4.70. 
For the stores with sales of less than 
$40,000 it is $5.26, and from this 



380 



TABLE 275 

TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL 

NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF 

FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1918 



Classified 

Total 
Set Sales 


Amount of 
Fixture Account 

per $100 of 
Total Ket Sales 


Number 

of 
Stores 


Total 
Net Sales 


Total 
Advertising 


Advertising per $100 of Total Het Sales 


Amount 

C 


Per Cent. 


(In OOO'a) 


Graphic 1 Actual 
> 20 40 60 80 100 120 140 




Total 
(Average) 


135 


$13,360,145 


$293,760 


$2.20 




100.0 






Total 


Under |2 
»2 to U 
$4 to t6 
♦s k over 


20 
45 
34 

55 


2,163,476 
3,706,654 
2,807,944 
4,682,071 


33,524 

75,135 

64,292 

120,829 


1.55 
2.03 
2.29 
2.58 


1 


70.5 
92.3 
104.1 
117.3 


(Averago) 










^^^^" 1^ 




Total 
(Average ) 


37 


1,117,468 


17,642 


1.58 




71.8 


Vn&ar $40 


Ubder #2 
♦2 to #4 
U to «6 

$6 It over 


4 
S 
11 
14 


124,966 
269,792 
297,192 
425,518 


1,735 

4,076 
6,383 
6,448 


1.39 
1.51 
1.81 
1.52 




63.2 
68.6 
82.3 
69,1 









Total 
(Average ) 


56 


3,239,547 


51,826 


1.60 


72.7 


t40 to |90 


Under i2 
#2 to %4 
U to *6 
$6 & over 


a 

22 
IS 
U 


434,936 
1,335,132 

779,116 
690,363 


4,353 
22,641 

12,045 
12,787 


1.00 
1.70 
1.55 
1.85 


45.5 
77.3 
70.5 
84.1 








Total 
(Average ) 


28 


3,298,407 


75,369 


2.32 


105.5 








Under $2 
»2 to »4 
♦4 to |6 

$6 8t over 


5 

12 
6 
6 


593,109 

1,417,061 

654,591 

633,646 


10,709 
31,290 
16,639 
17,731 


1.81 
2.21 
2.54 

2.80 




82.3 
100.5 
115.5 
127.3 


|80 to |180 
















Total 
(Average ) 


14 


5,704,723 


147,943 


2.69 


117.7 








Under i2 
»2 to «4 

|4 to te 

|6 k over 


3 
3 
3 
5 


1,010,465 

684,669 

1,077,045 

2,932,544 


16,727 

17,128 

30,225 
63,863 


1.66 
2.50 
2.81 
2.86 




75.5 
113.6 
127.7 
130.0 


|180 & over 















AverBge $2.20 



381 



TABLE 276 

TOTAL NET S^VLES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OP TOTAL 

NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF 

FIXTURE ACCOUNT PER $100 OP TOTAL NET SALES, 1914 



Clasgirisd 

Total 
Met Sales 
(In OC'O'e) 



Araount of 
Fixture Account 

per $100 of 
Total Net Sales 



Total 
Net Sales 



Total 
Advertising 



Advertising per $100 of Total Net Sales 



Graphic 

p 2p 4p 6,0 ep 10,0 izp 140 iqo 



Total 
(Average ) 



Ihder #40 



^ to |80 



teo to tlSO 



^180 & oTer 



Total 
(Average) 



$3,297,530 



$216,917 



Uoder $2 
(2 to U 
|4 to $6 
#6 fc over 



628,751 
1,324,582 
1,659,448 

5,984,949 



13,028 

57,391 

50, 556 

115,962 



Total 
(Average ) 



1,628,016 



51,019 



Under |2 
$2 to |4 
|4 to |6 

$6 k over 



216,927 

400,826 
535,624 
677,659 



2,178 

7,651 

5,424 

15,766 



Total 
(Average ) 



2, 464-, 877 



55,759 



nider (2 
|2 to >4 

#4 to $6 

♦6 t over 



201,671 

761,538 

442,609 

1,059,059 



2,912 
14,837 
12,505 
25,705 



Totia 
(Average ) 



2,509,827 



72,541 



Coder #8 
Is to |4 

♦4 to »6 

%6 & over 



211,153 
663,018 
902,215 
751,441 



7,958 
14,905 
28,507 
21,393 



Total 
(Average ) 



59,598 



Under $9 
|2 to #4 
♦4 to |6 

#6 II over 



181,000 
1,513,810 



4,500 
55,098 



$2.61 



2.07 
2.05 
2.72 
2.91 



1.91 



1.01 
1.91 
1.65 
2.33 



2.18 



1.44 
1.95 
2.78 
2.24 



2.89 



5.76 
2.25 
S.14 
2.91 



2.49 
3.64 





Average $2.61 



100.0 



79.3 
78.5 
104.2 
111.5 



7S.2 



38.7 
73.2 

62.5 
89.3 



83.5 



55.2 

74.7 

106.6 

85.8 



110.7 



144.1 
86.2 
120.3 
111.6 



95.4 
139.6 



382 



TABLE 277 

TOTAL NET SALES, FIXTURE ACCOUNT, AND AMOUNT OF FIXTURE ACCOUNT PER $100 

OF TOTAL NET SALES, FOR 135 IDENTICAL STORES CLASSIFIED BY SIZE, 

AND BY AMOUNT OF ADVERTISING PER $100 OF TOTAL NET 

SALES, 1919, 1918, AND 1914, COMBINED 



Classified 

Tot;al 
:i9t Sales 


Anoimt of 

Advertising 

per $100 of 

Total 

Net Sales 


of 
Store- 
years 


Total 
Net Sales 


Anoimt of 
FLnt'jxa 
Acoouat 


Fixture Aeoount per $100 of Total Det Sales 


A,-noimt 


Par Cent. 


Cln OOO'a) 


°ra^^o 1 Actual 
3 20 40 60 80 100 120 140 160 




Total 
(Average ) 


405 


$40,576,908 


$1,908,079 


$4.70 




100.0 








tJnder $1 
$1 to $2 
$2 to $3 
iZ k over 


99 
128 
109 

69 


6,041,768 

9,375,659 

14,595,172 

10,564,309 


217,855 
354,297 
674,077 
661,350 


3.61 
3.73 
4.52 
6.26 


76.3 


Total 




(Average ) 










133.2 








Total 
(Average) 


112 


3,119,809 


164,125 


5.26 


1U.9 








Under $1 
♦l to $2 
$2 to $3 
$3 4 over 


31 
44 

20 
17 


919,298 

1,214,515 

546,408 

439,588 


43,996 
63,129 
54, U9 
22,881 


4.79 
5.20 
6.24 
5.21 


101.9 

iia.a 

132.3 
110.9 


Under $40 




^^*""" 












Total 
(Average ) 


153 


8,672,180 


377,800 


4.36 


82.8 








Under $1 
$1 to »2 
$2 to $3 
$3 i ove> 


SO 

50 
35 
18 


2,797,430 
2,771,467 
2,034,101 
1,069,132 


104,578 
122,201 
84,959 
66,062 


3.74 
4.41 
4.18 
6.19 


79.6 
93.3 
88.9 
131.5 


$40 to ieo 
















Total 
(Average ) 


98 


11,411.444 


431,319 


3.73 


80.4 






|80 to $180 


Ondar $1 
$1 to $2 
$2 to $3 
$3 & over 


16 
27 
33 
22 


1,763,073 
3,166,728 
3,948,606 
2,533,037 


58,204 

94,473 

149,388 

129,254 


3.30 
2.98 
3.78 
5.10 


70.2 
63.4 
80.4 
103.5 












Total 
(Average) 


42 


17,373,475 


934,835 


5.33 


114. S 







tlBO fc over 


Under $1 
$1 to $2 
$2 to $3 
$3 i over 


2 
7 
21 
12 


S«l,967 
2,222,949 
8,066,057 
6,522,502 


11,077 

74,494 

405,611 

443, 653 


1.97 
3.35 
6.03 
6.80 


41.9 
71.3 
107.0 
144.7 








' 



Average $4.70 



383 



TABLE 278 

TOTAL NET SALES, FIXTURE ACCOUNT, AND AMOUNT OF FIXTURE ACCOUNT PER $100 

OF TOTAL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF ADVERTISING PER $100 OF TOTAL NET SALES, 1919 



ciuiirisd 

Tot»l 
let E«ls9 
(In OOO's) 



Jkaormt of 

AdTcrtlilsg 

per »10<; of 

Total 

Set Salss 



Anount of' 
Plituro 
Account 



Flxtul^ Account per tlOO of Total Het Sales 



Graphic Actual 

20 40 60 80 100 120 140 160 180 200 



CmSer $40 



$40 to teo 



teo to (ISO 



tl80 4 OTer 



118,919,223 



$738,774 



Dndor $1 
Jl to iz 
|2 to $3 
$3 8: over 



3,049,266 
3,905,793 
8,280,017 
3,636,157 



374,325 



93,171 
128,510 
539,711 
177,382 

16,697 



Under $1 
$1 to $2 
$2 to |3 
$3 & over 



159,936 
113,058 
28,261 
73,070 



e,645 
5,592 
2,050 
3,410 



tinder |1 
tl to $2 
t2 to tS 
$3 fc over 



2,967,756 

1,225,703 
927,429 
653,559 
181,265 



107,859 

41,104 
31, Ul 
S6,042 
9,582 



Total 
(Average] 



6,603,210 



175,562 



Under Si 

$1 to iz 

>2 to t3 
$5 k over 



1,529,517 

1,579,572 

2,109,129 

585,192 



41,033 
45,698 
67,271 
25,560 



total 
(Ayerago) 



9,975,942 



458,876 



Under il 
(1 to $2 
t2 to (5 
%Z & over 



534,510 
1,283,734 
5,509,268 
2,846,530 



5,389 

48,109 
244,348 
141,030 



43.90 



3.06 
3.29 
4.10 
4.81 

4.46 



3.55 
4.95 
7.25 
4.67 



5.65 

5.55 
5.55 
4.11 
5,29 



5.13 



3.09 
2.77 
3.19 
5.99 



4.40 



1.61 
5.75 
4.44* 
4.95 



100.0 

78.5 
64.4 

105.1 
123.3 

114.4 



90.5 
126.9 
185.9 
119.7 



95.1 



es.9 

S5.9 
105.4 
15S.6 



80.5 

79.2 
71.0 
81.8 
102.5 



112.8 

41.5 
96.2 
115.8 
126.9 



Average v3.90 



amount the averages diminish to 
$3.78, for the stores with sales of 
$80,000 to $180,000, and increase to 
$5.38 for those with sales of $180,000 
and over. Within each group of 
stores, classified by size, and for the 
total, the average fixture investment 



in terms of sales increases as expendi- 
tures for advertising, similarly meas- 
ured, increase. The group of stores 
which had sales between $40,000 and 
$80,000 may be used to illustrate 
these increases. The average for the 
entire group is $4.36. For those 



384 



which expended the smallest amount 
for advertising in relation to sales, 
the average is $3.74, and for those 
which expended most, it is $G.18. 
That is, over the entire range, the 
average amounts increase. Within 
the range, an inverse condition ob- 
tains. 

Similar, but somewhat different 
amounts are found for the various 
groups of stores in each of the other 
years considered. These are shown 
in actual amounts and in graphic 
form in the tables. 

In Tables 281 to 284, inclusive, the 
average amounts expended for ad- 
vertising in stores classified by size 
and by fixture investment per $100 
of total net sales are expressed as 
proportionate parts of $100 of sell- 
ing expense. Table 281 refers to the 
combined years and Tables 282 to 
284, inclusive, to 1919, 1918, and 
1914, respectively. 

For the combined years, the aver- 
age expenditure for advertising per 
$100 of selling expense is $20.85. 
Over the entire range of stores, the 
amounts increase as the stores in- 
crease in size, the average amount for 
those with sales of $40,000 to $80,000 
being the lowest for any of the 
groups. When the stores are classi- 
fied by size and further by the 
amounts invested in fixtures, the 
amounts expended for advertising 
per $100 of selling expense increase 
with the fixture investment per $100 



of total net sales. To this general 
rule, for some of the groups, there 
are clear exceptions and too much 
significance ought not to be assigned 
to the tendency indicated. Indeed, 
probably the most important func- 
tion which this and the corresponding 
tables for the individual years have, 
is to develop norms for the different 
groups of stores and not the tenden- 
cies for the amounts to increase or de- 
crease under different conditions of 
operation. The facts are given as 
they were determined largely be- 
cause, so far as is known, they rep- 
resent the only available data upon 
this topic, for stores in the retail 
field, 

C. — Summary. 

(1). The amounts of advertising 
expenditure per $100 of total 
net sales increase as the 
amounts invested in fixtures 
in relation to sales increase. 
This holds for all stores and 
for stores of a given size. It 
is true also for each of the 
years. 

(2). The proportions of selling 
expense attributable to ad- 
vertising increase as the 
amounts invested in fixtures 
per $100 of total net sales in- 
crease. This holds for all 
stores and for stores of a 
given size. 



385 



TABLE 279 

TOTAL NET SALES, FIXTURE ACCOUNT, AND AMOUNT OP FIXTURE ACCOUNT PER $100 

OF TOTAL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF ADVERTISING PER $100 OF TOTAL NET SALES, 1918 



■ 


AoouBt of 

Advertising 

per $100 of 

Total 

Bet Salea 


number 

of 
Stores 


Total 
Bet Salea 


Asumnt of 
FLxtur* 
Account 


Fixture Accoiint per $100 of Total Het Sales 


Clateifled 

Total 
Bot Bales 
(In OOO's) 


Amount 

C 


Per Cent, 


°'-^P'^« Actual 
20 40 60 80 100 120 140 . 




Total 
(Average) 


135 


$13,360,145 


$620,889 


$4.65 




100.0 








Cndop i\ 
»1 to «2 
$2 to t3 
$3 * over 


36 
44 
35 
20 


2,112,506 
<5, 258, 720 
4,278,153 
3,710,766 


87,312 
n9,980 
204,313 
209,284 


4.13 
3.68 
4.78 
5.64 


es.e 

79.1 
102. S 
121.3 


Total 
(Average) 












i 




Total 
(Average) 


37 


1,117,468 


62,352 


5.58 


120.0 








Dnder $1 
»1 to $3 

is to is 

$3 *! over 


10 

la 

6 
3 


323,214 

520,474 

175,690 

88,090 


19,400 

28,226 

9,932 

4,794 


6.00 
5.42 
5. 65 
4.89 


129.0 
116.5 
121.5 
105.2 


tinder t40 
















Total 
(Average) 


56 


3,239,547 


132,364 


4.09 


88.0 




I 




ITnder |l 
♦l to »2 
$2 to tS 

#3 fc over 


22 

16 

13 

5 


1,212,225 
912,773 
793,452 
321,097 


46,842 
38,913 
30,674 
15,935 


3.86 
4.26 
3.87 
4.96 


83.0 

91.6 

83.2 

106.7 


i*0 to ^80 


: 


: 












Totp.l 
(Average ) 


28 


3,298,407 


127,804 


3.87 


83.2 




• 




Under $1 
»1 to $2 
♦2 to «3 
♦3 i over 


3 

7 
10 
8 


349,410 

886,258 

1,138,028 

924, 7U 


15,382 
26,456 
34,412 
51,554 


4.40 
2.99 
3.02 
5.57 


94.6 
64.3 

64. » 
119.8 


•ao to liso 










Total 
(Average) 


14 


5,704,723 


298,369 


5.23 


112.5 




• 


$180 h over 


Under |l 
»1 to $2 
♦2 to $3 
$3 & over 


1 
3 
6 

4 


227,657 

939,215 

2,170,983 

2,366,868 


5,688 
26,385 
129,295 
137,001 


2.50 
2.81 
5.96 
5.79 


S3.B 
60.4 
128.2 
124. S 




'■ 







Averags ^.65 



386 



TABLE 280 

TOTAL NET SALES, FIXTURE ACCOUNT, AND AMOUNT OF FIXTURE ACCOUNT PER $100 

OF TOTAL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF ADVERTISING PER $100 OF TOTAL. NET SALES, 1914 



ClasBlfloa 


Ajaonnt of 

Advert Is log 

per $100 of 

Total 

Met Sales 


Number 

of 
Stores 


Total 
Net Salea 


Ajnonnt of 
Fixture 
Account 


Plituro Account per $100 of Total Bet Sales 


N«t Salaa 


Anount 


Per Cent. 




Gr«PMc 1 ietual 
3 20 40 60 80 100 120 140 160 180 200 




Total 
(Average) 


ISS 


♦8,297,530 


$548,416 


$6.61 




100.0 




1 


Total 
( Avar age > 


Under |1 
(1 to tZ 
$8 to $3 

$3 & over 


24 
45 

32 
54 


879,996 
2,213,146 
2,037,002 
3,167.386 


37,372 
106,807 
130,053 
275, 184 


4.25 
4.78 
6.38 
8.69 


64.3 

72.3 






131.5 




1 




Total 
(Average ) 


63 


1,628,016 


85,076 


5.25 


79.1 






Valve Ho 


Under $1 
♦l to »2 
»a to $3 
|3 & over 


16 
23 
13 
12 


436,148 
580,983 
342,457 
268,428 


18,951 
29, 311 
22,137 
14,677 


4.35 

5.05 
6.46 
5.47 


65.9 


■"^^ 


97.7 




: 




1 






Total 
(Average ) 


45 


2,464,877 


137,597 


6,58 


84.4 




1 


|40 t9 (80 


tinder $1 
$1 to $2 
♦2 to »3 
$3 i> over 


7 
17 
U 
10 


359,502 
931,265 
607,290 
666,820 


16,632 
52,177 
28,243 

40,545 


4.63 
6.60 
4.65 
7.15 


70.0 
84.7 
70.3 
108.2 






^^ 




Total 
(Average) 


22 


2,509.827 


128,153 


5.11 


77.3 


$00 to tlSO 


Dnder $1 
$1 to $2 
$2 to |3 
(3 «• over 


1 
6 
6 

9 


84,346 

700,896 

701,449 

1,023,134 


1,789 
24,319 
47,705 
54,340 


2.12 
3.47 
6.80 
S.31 


32,1 

52. S 

102.9 

80.3 












Total 
(Average) 


S 


1,694,810 


197,590 


U.66 


176.4 




i 


tlSO fc OTar 


Uader $1 
*1 to «2 
te to |3 
»S fc over 


2 

3 


385,806 
1,309,004 


31,968 
166,622 


8.29 
12.65 


125.4 
191.4 











Avorago $0.01 



387 



TABLE 281 

TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF 

SELLING EXPENSE, FOR 135 IDENTICAL STORES CLASSIFIED BY SIZE AND 

BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET 

SMILES, 1919, 1918, AND 1914, COMBINED 





Amount of 
Pljcturo Account 

per $100 of 
Total Uat Sales 


Hujnber 
of 

Store- 
years 


Total 
Selling 
Szpense 


Total 
Advertising 


Advertising per $100 of Selling Expense 


ClasBirisd 

Total 
Set B&lea 
(In 000' e) 


Amount 


Per Cent. 


Graphic Actual 
) 2p 4p 6p 80 100 1?0 140 




Total 
(Average ) 


405 


14,428,098 


$923,442 


S20.85 


_L r r . r p 


100.0 




1 




Ocder $2 

t2 tc ^ 
i4 to t6 
t6 &; ever 


72 
131 

86 
116 


832,922 

985,648 

798,319 

1,811,209 


147,345 

206,442 
182,392 
387,263 


17.69 
20.94 
22.85 
21.33 


84.8 

ICO. 4 
109.6 
102.5 


Total 




(Average) 














Total 
(AverRgp) 


112 


263,714 


54,347 


20.61 


98.8 








Under §2 
?2 to $4 
44 to C5 
t5 & ovsr 


14 
28 
27 

43 


25,921 

64,602 

58,105 

115,086 


5,788 
12,713 
U,755 
24,111 


22.33 
19.68 
20.20 
20.95 


107.1 
94.4 
96.9 

100.5 


tTmler Uo 


^T 














Tctsl 
(Averape) 


153 


806,561 


145,442 


18.04 


86.5 






$40 to teo 


Under 52 
$2 to |4 
^4 to $6 

$6 & ovsr 


20 
65 
31 
39 


78,674 
314,078 
158,148 
255,461 


10,467 
61,735 
31,295 
41,947 


13.30 
19.66 
19.79 
16.42 


— i 


63.8 
94.3 
94.9 
78.8 










Tctcil 
(Average) 


98 


1,255,879 


253,444 


20.21 


96.9 








Under f2 
€2 ts ti 
^ to $5 
$S & over 


27 

33 
19 
19 


507,174 
405,623 
274,227 
266,855 


56,997 
77,049 
61,961 
57,437 


18.56 
19.00 
22.59 
21.52 


89,0 

91.1 

108.3 

105.2 


tso to tieo 












1 




Total 
(Average) 


42 


2,104,144 


470,209 


22.56 


107.2 




Older iz 
i2 to C4 
$4 to Se 
t6 t over 


11 
7 
9 

15 


421,153 

201,345 

307,839 

1,173,807 


74,093 

54,947 

77,401 

263,766 


17.59 
27.29 
25.14 
22.47 


1 


84.4 
130.9 
120.6 
107.8 


flBO i over 




1 




^T" 




: 



Average §20.85 



388 



TABLE 282 

TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF 

SELLING EXPENSE, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919 



Classified 


Amotmt of 
Fixture Account 

per $100 of 
Total Hot Sales 


number 

of 
Stores 


Total 
Selling 

Eixpenao 


Total 
Advertising 


Advertising per ftlOO of Selling Expensa 


ToteO. 
Bet Sales 
(la ooo's) 


Amormt 




Per Cent. 


Graphic 1 Actual 
29 49 6<p 80 lOp 120 140 160 




Total 
(Average) 


135 


$1,992,310 


$412,745 


$20.72 


1 


100.0 








Under $2 
$2 to $4 
U to $6 
f 6 & over 


53 
51 
23 
23 


555,232 
428,443 

326,474 
702, 161 


100,793 
95,916 
67,564 

150,472 


18.83 
21.92 
20.70 
21.43 


1 


90.9 
105.8 

99.9 
103.4 


Total 


1 


(Average) 






1 




1 




Total 
(Average ) 


12 


24,943 


S,686 


22.79 


110.0 




1 




Under tz 
t2 to U 
$4 to $6 

56 tc over 


2 
4 
9 

3 


5,398 
8,213 
7,582 
5,752 


1,875 
986 
928 

1,897 


55.18 
12.01 
12.34 
32.97 


266.3* 
58.0 
59.1 

159.7 


Under ^0 






1 




Total 
(Average ) 


52 


229,272 


59,857 


17.38 


83.9 


f.40 to Jeo 


Under $2 
$2 to i4 
*4 to $6 

$6 & over 


8 

28 

8 

e 


29,693 
118,454 
43,053 
38,072 


5,202 

24,255 

6,945 

5,455 


10.78 
20.48 
16.13 
14.33 


1 


52.0 
93.3 
77.8 
69.2 


1 

1 




Total 
(Average) 


43 


587,583 


104,534 


17.79 


85.9 


tao to Siao 


Under $2 
$2 to $4 

$4 to $e 

fe k over 


20 
15 

7 
6 


226,744 
168,663 
96,369 

«5i802 


38,550 
50,856 
17,015 
18,313 


18.91 
18.29 
17.65 
19.12 


1 


81.6 
88.3 
85.2 
92.3 


^^^^^^^^ 








1 




Total 
(Average ) 


23 


1,150,510 


262,668 


22.83 


110.2 




Under $2 
«2 to U 

|4 to $6 
$6 i over 


e 

4 
5 
6 


275,397 
133,108 
179,470 
562,555 


57,366 

57,819 

42,676 

124,807 


20.83 
28.41 
23.78 
22.19 


1 


100.5 
137.1 
114.8 
107.1 


♦l80 i over 


1 


^^^^^^^V""" 











Averace $20'. 72 

roll len^t2x ncrt sbouiS 



389 



TABLE 283 

TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OP 

SELLING EXPENSE, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OP FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1918 





Amount of 
Plxtura Account 

per 5100 of 
Total Bet Sales 


Kumbor 

of 
Stores 


Total 
Selling 
Expense 


Total 
Advertising 


Advertising per $100 of Selling Expense 


Classified 
Total 


Amount 


Per Cent. 


Bet Sales 
(la OOC'e) 


Graphlo 
) 2p 40 60 80 lOp 120 14| 


Actual 





Total 
(Average) 


135 


»1, 473, 360 


♦293,780 


$19.94 




lOO.O 


Total 


Under t2 
»2 to »4 
$4 to »6 
ie h over 


20 
45 
34 
36 


244,746 
370,632 
267,521 
590,559 


33,524 

76,136 

64,292 

120,829 


13.70 
20.28 
24.03 
20.46 


1 
1 


68.7 
101.7 
120.5 

102.6 


(Average) 














Total 
(Average ) 


37 


92,371 


17,642 


19.10 


1 


95.8 




1 




Under J2 
♦2 to ^ 
*4 to »6 

$6 i over 


4 

8 

11 

14 


9,959 
19,976 
23,674 
38,762 


1,735 
4,076 
5,383 
6,448 


17.42 
20.40 
22.74 
16.63 


87.4 
102.3 
114.0 

89.4 


Ucder |40 








^^^^^^^ 








Total 
(Average) 


56 


299,694 


51,826 


17.29 


86.7 




I 
1 


^ to $80 


Under $2 
$2 to U 
U to $G 
$6 k over 


8 
22 
15 
11 


53,916 

121,256 

65,955 

78,567 


4,353 
22, 641 
12,045 
12,787 


12.33 
IB. 67 
18.26 
16.28 


64.3 
93.8 
91.8 
81.6 






1 




Total 
(Average) 


28 


363,676 


76,369 


21.00 


105.3 








Coder $2 
i2 to •»4 

■^ to ie 
56 & over 


6 

12 

S 

6 


65,117 

161,063 

67,483 

80,013 


10,709 
31,290 
16,639 
17,731 


19.43 
19.43 
24.66 
22.16 


i 


97.4 
97.4 
123.7 
111.1 


|30 to $180 




■l' 








1' 




Total 
(Average) 


14 


717,619 


147,943 


20.62 


103.4 




1 


♦iSO 8t over 


Under J2 
|2 to (4 
♦4 to *5 

♦6 4 over 


3 

3 
9 

6 


145,756 

68,257 

110,409 

393,217 


16,727 
17,128 
30,225 
83,863 


11.48 
25.10 
27.38 
21.33 


57.6 
125.9 
137.5 
107.0 






1 




, 














Average $19.94 





390 



TABLE 284 

TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF 

SELLING EXPENSE, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT 

OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1914 





Anoont of 
Fixture Account 

per tlOO of 
Total Set Salea 


Hujnbor 

of 
Stores 


Total 
Selling 
KxpenBO 


Total 
Advertising 


Advertising per $100 of Selling Erpense 


Clasoiried 

Total 
Vet Sales 


AjoouQt 


Per Cent. 


(In OOO's) 


Or&phle 1 Actual 
? SP 4p 6p 8p lOp 120 140 




Total 
(Average) 


135 


$962,428 


$216,817 


$22.54 




100.0 




Under |2 
|2 to $4 
ft to 46 
$6 & over 


14 
56 
29 
57 


52,942 
186,673 
204,324 
518,489 


13,028 

37,391 

50,536 

115,962 


24.61 
20.03 
24.75 
22.57 


1 


109.2 
88.9 

109.7 
99.6 


Total 
(AverEge) 














Total 
(Avera^ ) 


63 


146,398 


51,019 


21.19 


94.0 


teder i-tO 


Under |2 
iz to U 
U to is 

|6 k over 


S 
16 
IS 
26 


12,664 
56,413 
26,849 
70,672 


2,178 

7,651 

5,424 

15,766 


17.34 
21.01 
20^,20 
22.34 




76.9 
95.2 
89.6 










Total 
(Average) 


45 


277,595 


53,759 


19.38 


86.0 


t40 to tSO 


Under *2 
$2 to U 
|4 to $6 

$6 8e over 


15 

8 

20 


15,065 

74,568 

49,140 

138,822 


2,912 
14,837 
12,305 
25,705 


19.33 
19.95 
25.04 
17.08 


85.8 
88.5 
111.1 
7S.e 










Total 
(Average) 


22 


502,620 


72,541 


23.97 


106.5 




Under t2 
$2 to t4 
$4 to is 
$6 St over 


2 

6 
7 

7 


25,513 

75,892 

110,375 

91,040 


7,938 
14,903 
28,307 
21,393 


31.36 
19.64 
25.65 
25.50 




139.1 
87.1 
113,8 
104.5 


tSO to tl80 




1 




^ 




1 

1 




Total 
(Average) 


5 


256,015 


59,598 


25.25 


112.0 


$130 k over 


Older (2 
t2 to U 
t4 to $6 
|6 at over 


1 

4- 


17,960 
218,055 


4,500 
55,098 




1 

1 
1 


111'.2 
112.1 






" 






1 



Averego $22.54 



391 



VI. OTHER SELLING EXPENSE 



1. — YEARLY AMOUNTS OP OTHER SELL- 
ING EXPENSE FOR STORES CLASSI- 
FIED BY YEARS^ BY SIZE, AND BY 
LOCATION. 

The foregoing discussion, pages 187 
to 291, has to do with the expenditures 
for wages and salaries and advertis- 
ing which are properly chargeable to 
selling expense, as defined in this 
study. The present section has to do 
with a group of miscellaneous ex- 
penses, which include expenditures 
for wrappings and containers, bushel- 
ling, and delivery. In view of the 
discussion in Volume III of the 
Bureau's study of Costs, Merchandis- 
ing Practices, Advertising and Sales 
in the Retail Distrihntion of Clothing, 
it is thought to be unnecessary to 



discuss the expenses for these differ- 
ent items separately. Accordingly, 
they have been grouped under one 
general heading, which for conveni- 
ence is called "other" selling ex- 
pense. Moreover, the analysis is con- 
densed, the tables showing in Section 
1 only the total amounts for stores 
classified by years, by size, and by 
location. Under Sections 2, 3, and 4, 
respectively, the stores are further 
classified according to amounts of in- 
ventory, amounts of sales per full- 
time sales-person, and amounts of 
fixture investment per $100 of total 
net sales. For the stores so classified, 
the expenses are expressed in terms 
of total net sales and total selling ex- 
pense. 



TABLE 285 

AMOUNT OF OTHER SELLING EXPENSE PER $100 OP TOTAL NET SALES AND PER $100 

OF TOTAL SELLING EXPENSE, FOR 154 IDENTICAL STORES CLASSIFIED 

BY SIZE, 1919, 1918, AND 1914 





Dumber 

of 
Store- 
yoara 


Other Selling Expense per $100 of 
Total Het Sales 


Other Selling Expanse par $100 of 
Total Selling Expense 


Yeara 


Ajuount 


Per Cent. 


Amount 


Per Cent. 




<^'P*^° Actual 
? 20 40 60 80 100 12;0 


Oraphlo Actual 
? 2P 4p 60 80 100 ISO 


Total 
(Average) 


462 


51.30 




h 


100.0 


$12.06 












1 




1919 


154 
164 
1B4 


1.24 
1.35 
1.35 


95.4 
103.8 
103.8 


11.94 
12.39 
11.81 




1018